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Nigeria Tax Act, 2025 · NTA s.57

The 15% minimum effective rate

Very large companies must pay at least 15% of net income, whatever their reliefs.

Who this lands on: Companies in a multinational group, and any company turning over ₦50 billion or more. Not an ordinary small business.

Where a company's effective tax rate falls below 15%, it must pay additional tax to bring it up to that floor (NTA s.57).

This exists so that incentives and allowances cannot take a very large company's tax to near nothing. It has no bearing on an ordinary Nigerian SME.

Also in What a company pays

This is a plain reading of the Act for orientation, not tax advice. Where money is at stake, check the section itself or ask an accredited tax agent.