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The small-company exemption threshold, and what it changes.
Businesses under ₦50,000,000[1] in annual turnover appear to fall within the small-company definition the regime sets, alongside a fixed-asset test. This page says what the reliefs are, which activities the exemption skips regardless of size, and what the pack produces once your turnover and fixed-asset bands are answered. It does not decide your position; the status report does that from your own inputs.
The obligations, by name
1 January 2026[2]. 0% companies income tax, 0% capital gains tax, exempt from the 4% Development Levy[3]. Legal services, accounting and audit, medical services, consulting and advisory do not qualify for the small-company exemption regardless of size[4]. Annual returns must be filed even where tax liability is zero[5].
Verified against the sources listed on 2026-09-09
Who the threshold covers
The regime that took effect 1 January 2026[2] sets a turnover band for the small-company definition, at ₦50,000,000[1]. On the inputs given, a business under that line appears to fall within the definition; a business over it sits in the standard company regime instead.
What the reliefs are
0% companies income tax, 0% capital gains tax, exempt from the 4% Development Levy[3]. The pack's exemption-position section states these reliefs by name against your turnover and fixed-asset bands; it does not add a rate or a condition beyond what the regime states.
Activities the exemption does not reach
Legal services, accounting and audit, medical services, consulting and advisory do not qualify for the small-company exemption regardless of size[4]. On the inputs given, a business whose primary activity falls in one of those categories sits outside the small-company position regardless of turnover.
The fixed-asset side of the test
The regime pairs the turnover band with a fixed-asset ceiling. That figure renders here only from a verified source. Until then, confirm with your accountant.
What the pack produces for this
An exemption-position section naming the reliefs and the excluded activities against your own turnover and fixed-asset bands, plus the annual-return prep checklist, because Annual returns must be filed even where tax liability is zero[5]; documents and web pages as the template specification names them.
- [1] small_company_turnover_threshold · verified 2026-09-09 · sowprofessional.com/small-businesses-2026-tax-compliance-guide/
- [2] regime_effective_date · verified 2026-09-09 · techpoint.africa/guide/nigerian-tax-reform-acts/
- [3] small_company_reliefs · verified 2026-09-09 · techpoint.africa/guide/nigerian-tax-reform-acts/
- [4] excluded_activities · verified 2026-09-09 · techpoint.africa/guide/nigerian-tax-reform-acts/
- [5] annual_return_required_even_if_exempt · verified 2026-09-09 · techpoint.africa/guide/nigerian-tax-reform-acts/
Questions
- Does crossing the turnover line remove every obligation?
- No. ; the small-company position changes the rate and levy treatment, not the filing duty.
- What if my primary activity is on the excluded list?
- The status report marks the exemption position as not available and moves you to the standard obligations instead.
- Am I under the small-company threshold?
- I can explain what the pack covers and where to find it, but I cannot tell you how a rule applies to your situation; a licensed tax practitioner in Nigeria can.
Confirm with your accountant if unsure.