Under current Nigeria law, taxation is enforced by the 3 tiers of Government, i.e. Federal, State, and Local Government with each having its sphere clearly spelt out in the Taxes and Levies (approved list for Collection) Decree, 1998. In the Nigerian Federation, the National Assembly is empowered by S.4(3) of the Constitution of the Federal Republic 1999, to make for the Federation in respect of the Federal  in respect of matters included in the exclusive legislative list to the exclusion of the  Houses of Assembly of the State. In furtherance of its powers, the Legislature enacted the following into law at various times:

  • Personal Income Tax Act-Cap P8 Vol. 13 LFN 2004
  • Companies Income Tax Act-Cap C21, Vol. 3 LFN 2004
  • Stamp Duties Act-Cap S8 Vol. 14LFN 2004
  • Value Added Tax-Cap V1 Vol. 15 LFN2004
  • Petroleum Profit Tax-Cap P13 Vol. 13 LFN 2004
  • Capital Gains Tax-Cap C1 Vol. 2 LFN 2004
  • Customs Duties-Cap 45 Vol. 4 LFN 2004
  • Excise Duties-Cap 45 Vol. 4 LFN 2004

The imposition or assessment of a tax is the means by which the government sources for the revenue required for its activities. This is usually, by the way a monetary charge imposed by the government on persons, companies, transaction or properties to yield revenue. The division of taxing powers in a country invariably depends on the system of the government, whether it is federal or unitary. Nigeria runs a federal system of government.

The Federal Government, under President Goodluck Jonathan administration, through the Minister of Finance and Coordinating Minister of Economy, Dr. Ngozi Okonjo-Iweala, on May 26, 2015, amended the Taxes and Levies (approved List for Collection) Act, Cap. T2, Laws of the Federation of Nigeria, 2004. The Act was previously referred to as Taxes and Levies (Approved List for Collection) Decree, No. 21 of 1998.


Personal income tax in respect of:

  • Pay-As-you-Earn (PAYE);
  • Direct taxation (Self-assessment)
  • Minimum Tax.
  • Back Duty Assessment
  • Withholding Tax for Individuals.
  • Capital Gains Tax for individuals.
  • Stamp Duties on instruments executed by individuals
  • Pools betting, lotteries, gaming and casino taxes.
  • Road Taxes.
  • Educational Levy.
  • Business premises registration.
  • Development levy for individuals.
  • Naming of street registration fee in State Capitals.
  • Right of Occupancy fees on land owned by the State Government
  • Market taxes and levies where state finances is involved.
  • Hotel, Restaurant or Event Centre Consumption Tax, where applicable.
  • Environmental (Ecological) Fees, where applicable
  • Mining, Milling and Quarry Fees, where applicable
  • Animal Trade Tax, where applicable
  • Produce Sales Tax, where applicable
  • Slaughter or Abattoir Fees, where state finance is invo0lved
  • Infrastructure Maintenance Charge of Levy, where applicable
  • Fire Services Charge
  • Economic Development Levy, where applicable
  • Social Services Contribution Levy, where applicable
  • Signage and Mobile Advertisement, jointly collected by states and Local Government
  • Property Tax
  • Land Use Charge, where applicable.


The filling and return process, is a core process in tax administration, therefore taxpayers are expected to file returns in compliance with tax laws.

At the beginning of the tax year, every employee is expected to fill tax form ‘A’, the employee is also expected to fill form H3 or any prescribed form for return of income and claim for allowances and reliefs on behalf of its employee for the year of assessment (period of twelve (12) months commencing from 1st day of January of the year of assessment)

The Form H3 must be signed and stamped by an officer in the establishment duly assigned to do and be filled with the relevant tax authority within the time specified in the notice as state in regulation ‘13’ of Operation of Pay As You Earn (PAYE) regulations.