BizBooks Insights
Money, tax and payroll for Nigerian companies, explained plainly.
Practical guides updated for the 2026 tax rules, written for owners and finance leads who'd rather run the business than decode tax law.
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Payroll & people
How to calculate PAYE in Nigeria (2026 tax bands, worked examples)
To calculate PAYE in Nigeria in 2026, take the employee's annual gross pay, subtract pension (8%), NHF and rent relief (20% of rent, up to ₦500,000), then apply the bands. The first ₦800,000 is tax-free, then 15%, 18%, 21%, 23% and 25%. Divide the annual tax by 12 for monthly PAYE.
4 min read · Updated 27 Sept 2026
Getting paid & cash flow
How to get clients to pay on time: a collections playbook for Nigerian agencies
To get clients to pay on time, agree payment terms and deposits in the contract, send complete invoices to the client's accounts team, remind them before the due date, follow a fixed escalation schedule (due date, 3, 7, 14 and 30 days late), involve your senior contact after 30 days, and pause work on accounts more than 60 days overdue.
4 min read · Updated 27 Sept 2026
Taxes
Nigeria Tax Act 2025 explained: what changed for companies in 2026
The Nigeria Tax Act 2025 took effect on 1 January 2026. For companies, the big changes are a 0% company income tax rate for small companies (turnover up to ₦100m and fixed assets up to ₦250m, excluding professional services), a single 4% development levy for other companies, input VAT recovery on services and assets, new PAYE bands and a renamed tax authority, the Nigeria Revenue Service (NRS).
6 min read · Updated 27 Sept 2026
Free tools
PAYE calculator 2026
Salary to PAYE, pension and take-home pay under the new tax bands.
Net to gross salary calculator
The gross salary to offer for a take-home figure you've agreed.
Cost of an employee calculator
What a hire really costs: salary, employer pension, NSITF and ITF.
Company income tax calculator 2026
CIT and 4% development levy, with the small-company 0% check.
VAT calculator Nigeria (7.5%)
Add 7.5% VAT to a price, or take VAT out of a total.
VAT & WHT invoice calculator
What your client actually pays after VAT and withholding tax.
Taxes
VAT, WHT, PAYE and company tax under the 2026 rules, explained for companies.
- 3 min
E-invoicing in Nigeria (NRS MBS): timeline and what SMEs must do
What the Nigeria Revenue Service's Merchant-Buyer Solution (MBS) e-invoicing system is, the rollout timeline by taxpayer size, and how small and medium companies should prepare now.
- 3 min
How to get a tax clearance certificate (TCC) for government and corporate contracts
What a Nigerian company tax clearance certificate is, why government agencies and large clients ask for it, what you need before applying, and how to avoid delays.
- 3 min
Late filing and payment penalties in Nigeria (2026)
What Nigerian companies pay for filing tax returns late or paying tax late under the Nigeria Tax Administration Act 2025, plus pension and CAC penalties, and how to avoid them.
- 2 min
Tax ID (TIN) for companies in Nigeria: what it is and why clients ask for it
How Tax IDs work for Nigerian companies from 2026, why your CAC RC or BN number now serves as your Tax ID, where to use it, and why it matters for invoices and withholding tax.
- 3 min
The 4% development levy in Nigeria: who pays it and how it's calculated
What the development levy under the Nigeria Tax Act 2025 is, which companies pay it, how 4% of assessable profit is calculated, which old levies it replaces, and a worked example.
- 6 min
Nigeria Tax Act 2025 explained: what changed for companies in 2026
A plain-English guide to the Nigeria Tax Act 2025 for company owners: small-company exemption, 4% development levy, VAT input recovery, new PAYE bands, WHT and the NRS.
- 4 min
Nigeria tax calendar 2026: every deadline a company must know
Monthly and annual tax deadlines for Nigerian companies in 2026: PAYE by the 10th, VAT and WHT by the 21st, pension within 7 working days, CIT returns within 6 months of year end, Form H1 by 31 January.
- 4 min
Small company tax exemption in Nigeria: does your company qualify for 0% CIT?
Who counts as a small company under the Nigeria Tax Act 2025, the ₦100m turnover and ₦250m fixed-asset tests, the professional services exclusion, and what small companies must still file.
- 4 min
VAT in Nigeria for service companies: when to charge it, input VAT and filing (2026)
How VAT works for Nigerian agencies, consultancies and IT firms in 2026: the 7.5% rate, who must charge it, claiming input VAT on services, monthly returns by the 21st and worked examples.
- 4 min
Withholding tax in Nigeria 2026: rates, credit notes and how to use WHT credits
WHT rates under the 2024 regulations (5% for consultancy and professional fees, 2% for supplies), the small business exemption, remittance deadlines, and how to turn WHT deducted by clients into tax credits.
Payroll & people
Paying staff and contractors correctly: PAYE, pension and everything in between.
- 3 min
Annual employer PAYE returns (Form H1) in Nigeria: step by step
What the employer's annual PAYE return (Form H1) is, the 31 January deadline, what information it needs for each employee, how to file with your State IRS, and how to prepare during the year.
- 3 min
How to structure salaries in Nigeria: basic, housing, transport and allowances
How Nigerian companies split salaries into basic, housing, transport and other allowances, why the split affects pension and NHF, common structures, minimum wage, and mistakes to avoid.
- 3 min
Pension contributions explained for Nigerian employers (PenCom, RSA, deadlines)
How the Contributory Pension Scheme works for employers in Nigeria: who must join, the 8% and 10% contributions, what counts as monthly emoluments, the 7-working-day deadline, group life insurance, penalties and compliance certificates.
- 2 min
What should be on a Nigerian payslip? (with a template)
The information a good payslip in Nigeria should show in 2026 (earnings, PAYE, pension, NHF, employer contributions, pay date), with a ready-to-copy layout and common mistakes to avoid.
- 3 min
Employee or contractor? Tax, pension and legal risk for Nigerian companies
How Nigerian companies should treat freelancers and contractors versus employees: PAYE versus withholding tax, pension, the signs someone is really an employee, and a comparison table.
- 4 min
How to calculate PAYE in Nigeria (2026 tax bands, worked examples)
Step-by-step PAYE calculation under the Nigeria Tax Act 2025, with the new tax bands, the ₦800,000 tax-free threshold, pension and rent relief, and worked examples for ₦70k, ₦250k, ₦500k and ₦950k monthly salaries.
- 3 min
Payroll in Nigeria: a first-time employer's guide (PAYE, pension, NHF, NSITF, ITF)
Everything a Nigerian company must do when it hires staff: registering as an employer, PAYE, pension, NHF, NSITF and ITF, payslips, deadlines and a monthly payroll routine.
Getting paid & cash flow
Invoices, deposits and collections that keep cash coming in.
- 3 min
Cash flow forecasting for service companies (13-week method)
How Nigerian agencies and service firms can build a simple 13-week cash flow forecast: opening cash, expected receipts, payroll, fixed costs, taxes, and how to act on the result.
- 4 min
Payment reminder email templates (from polite to firm)
Ready-to-use payment reminder emails for Nigerian businesses: before the due date, on the due date, 7, 14 and 30 days late, a final notice, and a WhatsApp version, plus subject lines that get opened.
- 3 min
Paystack vs Flutterwave vs bank transfer for B2B invoices in Nigeria
Comparing Paystack, Flutterwave and direct bank transfer for collecting invoice payments from Nigerian clients in 2026: fees, caps, settlement, reconciliation and when to use each.
- 3 min
Retainer billing for agencies: pricing, contracts and invoicing in Nigeria
How Nigerian agencies and consultancies should structure retainers: pricing models, what to put in the retainer agreement, billing in advance, scope creep, VAT and WHT, and automating monthly invoices.
- 4 min
How to get clients to pay on time: a collections playbook for Nigerian agencies
A practical playbook for agencies and consultancies chasing late payments in Nigeria: prevention in the contract, a reminder schedule, message templates, escalation steps and what to do past 90 days.
- 4 min
How to write a professional invoice in Nigeria (VAT invoice checklist)
What a Nigerian company invoice must include in 2026: TIN, RC number, client PO, VAT at 7.5%, WHT, amount in words and bank details. Includes a checklist and an example layout.
- 3 min
Mobilisation fees and deposits: payment terms that protect Nigerian agencies
How much deposit or mobilisation fee to charge on projects in Nigeria, how to structure milestone payments, how VAT works on deposits, and how to credit deposits on the final invoice.
Bookkeeping & reports
The routines and reports that tell you how the company is really doing.
- 3 min
Aged receivables: how to read the report and what to do about 90+ days
What an aged receivables report is, how to read the buckets (coming due, 1–30, 31–60, 61–90, 90+ days), key metrics like DSO, and an action plan for each bucket, including when to write off bad debts.
- 3 min
Cash vs accrual accounting: which should your company use?
The difference between cash basis and accrual basis accounting, worked examples for a Nigerian service company, which one financial statements and tax use, and how to use both in practice.
- 3 min
Chart of accounts for a Nigerian service company (template)
A practical chart of accounts template for Nigerian agencies, consultancies and IT firms, with assets, liabilities (VAT, PAYE, pension, WHT), equity, income and expense accounts, numbering, and tips for keeping it simple.
- 2 min
Why your profit and your bank balance don't match
The seven common reasons a profitable Nigerian company has less cash than expected (late-paying clients, VAT, equipment, loans, stock, owner drawings, timing) and how to fix each one.
- 3 min
Month-end bookkeeping checklist for Nigerian companies
A 12-step month-end close for Nigerian service companies: reconcile bank accounts, chase receivables, record bills and payroll, prepare VAT, PAYE and WHT, review the profit and loss, and file receipts.
- 3 min
Profit and loss statement explained (with a Nigerian agency example)
What a profit and loss (income statement) shows, how to read each line, gross vs net profit, accrual vs cash basis, and a worked example for a Nigerian digital agency.
Running a company
Tools, terms and decisions every Nigerian company owner faces.
- 3 min
Business name vs limited company in Nigeria: tax and liability differences
Comparing a business name (BN) and a private limited company (Ltd) in Nigeria: personal liability, how each is taxed under the 2026 rules, the small company exemption, compliance, credibility with clients, and when to convert.
- 2 min
CAC annual returns: deadlines, penalties and how to file (2026)
When Nigerian companies and business names must file CAC annual returns under CAMA 2020, the 18-month grace period for new companies, late filing penalties, director liability and how to file online.
- 4 min
How to move your books from Wave or Zoho Books (without losing history)
Which reports to export from Wave and Zoho Books, what each one contains, and how to bring clients, invoices, services, payments and retainers into a new accounting tool without losing anything important.
- 3 min
Outsourced bookkeeping in Nigeria: what it covers, what it costs and when it's worth it
When a Nigerian company should outsource bookkeeping, tax filing and payroll, what a good provider does each month, how pricing works, questions to ask, and how it compares with hiring in-house.
- 4 min
Wave stopped sending invoices in Nigeria: what it means and your options
Wave no longer sends invoices or reminders for businesses outside the US and Canada. What still works for Nigerian users, what doesn't, and how to choose between your options.
- 4 min
Glossary: business finance and tax terms for Nigerian companies
Plain-English definitions of the accounting, tax and payroll terms Nigerian company owners meet: accrual, aged receivables, CIT, development levy, input VAT, MBS, NRS, PAYE, PFA, RSA, TIN, WHT and more.