← Help centre

Who collects what: federal and state, side by side

Nigeria has two tax offices in your life. Knowing which is which is most of the job.

The split

Federal, to the Nigeria Revenue Service:

  • VAT on your sales
  • Company income tax, if you're a limited company
  • Withholding tax you deducted from payments to companies

State, to your own state's internal revenue service:

  • PAYE on your staff's salaries
  • Personal income tax, if you're not a limited company
  • Withholding tax you deducted from individuals and unregistered suppliers
  • Business premises registration

Two answers decide yours

How the business is registered tells you whether your profit is company income tax or personal income tax.

Which state it belongs to tells you which revenue service the state half goes to. Both live in your tax profile in settings, and both can be changed the day they change in real life.

Where a person lives can override where you are

Staff tax follows the employee's home state, not the business's. So a Lagos shop with an Ogun-resident staff member remits to two offices, and BizBrada shows them as two groups rather than one blurred total.

What we hold, and what we don't

Federal rates and dates: all of them, everywhere in Nigeria.

State rates: Lagos in full, with more added state by state.

Anywhere else, you'll still see the obligation and the date — we just won't put a figure on the state part until we hold that state's own rates. A confident wrong number is worse than an honest gap.

What to do with this

Not sure it applies to you? Ask us.

Read next