Description of Incentive Benefits
A company is entitled to bonus on the amount of tax paid (which shall be available as credit against its future taxes), if it pays its CIT 90 days before due date as follows:
(a) 2% bonus for medium-sized company; and
(b) 1% bonus for any other company
Year Introduced
2020
Legal Document/ Legal Reference Instrument
Section 77(5) of CITA 2004 (As amended by Section 18(c) of Finance Act 2019 and Section 15 of Finance Act 2021)
Duration/ Mode
Continuously, subject to future amendments
Sector
Companies in all sectors
Federal or State Level
Federal
Implementation Agency
FIRS
Eligibility Criteria
i. A company must file returns and provisional accounts as required in Section 55 of CITA.
ii. A company must pay its tax 90 days before due date as follows:
- 6 months after the company’s financial year end for existing companies
- For a new company: 18 months from the date of incorporation or 6 months after the first financial year end; and 8 months for self-assessment companies
Awarding Agency
FIRS

Description of Incentive Benefits
Notwithstanding anything contained in Section 55 of CITA 2004 (As amended), the Service may by notice specify the form of the accounts to be included in a tax return, instead of audited accounts specified in subsection (1)(a), in respect of small and medium companies as defined under this Act.
Year Introduced
2021
Legal Document/ Legal Reference Instrument
Section 55(9) of CITA 2004 (As amended by Section 16(c) of Finance Act 2020 and Section 12 of the Finance Act 2021)
Duration/ Mode
Continuously, subject to future amendments
Sector
Companies in all sectors
Federal or State Level
Federal
Implementation Agency
FIRS
Eligibility Criteria
i. The company must be a small company or medium company as defined by Section 105 of CITA 2004 (As amended by S. 22(c) of Finance Act 2019)
Awarding Agency
FIRS

Description of Incentive Benefits
A company is entitled to instalment payment of CIT within 6 months
Year Introduced
2020
Legal Document/ Legal Reference Instrument
Section 77(4) of CITA 2004 (As amended by Section 18(b) of Finance Act 2019)
Duration/ Mode
Continuously, subject to future amendments
Sector
Companies in all sectors
Federal or State Level
Federal
Implementation Agency
FIRS
Eligibility Criteria
i. A company must file returns under self-assessment
ii. A company must make a request for monthly instalment payment to FIRS. The request shall be accompanied with proof of payment of the first instalment into the bank
iii. Monthly instalments should not exceed 6 months and shall expire after 30th of November within the year of assessment
Awarding Agency
FIRS

Description of Incentive Benefits
Dividend from profit already taxed or exempted from taxation under CITA, CGTA or PPTA will no longer be subjected to tax
Year Introduced
2020
Legal Document/ Legal Reference Instrument
Section 19 (2) of CITA 2004 (As amended by Section 7(a) of the Finance Act 2019)
Duration/ Mode
Continuously, subject to future amendments
Sector
Companies in all sectors
Federal or State Level
Federal
Implementation Agency
FIRS
Eligibility Criteria
i. If dividend is paid out of profits that are exempted from income tax by the provisions of CITA, ID(ITR)A, PPTA, CGTA, etc.
ii. If profits or income are regarded as franked investment income
iii. If rental income and dividend income are from a real estate investment company.
Awarding Agency
FIRS

Description of Incentive Benefits
Exemption of Agricultural Companies from CIT for the first 5 years renewable for 3 years
Year Introduced
2020
Legal Document/ Legal Reference Instrument
Section 23(1C)) of CITA 2004 (As amended by Section 9 of Finance Act 2019)
Duration/ Mode
Continuously, subject to future amendments
Sector
Companies in Agricultural Sector
Federal or State Level
Federal
Implementation Agency
FIRS
Eligibility Criteria
i. A company must file tax returns to FIRS
ii. A company must be engaged in agricultural production
iii. A company must show satisfactory performance of agricultural production
Awarding Agency
FIRS

Description of Incentive Benefits
Small companies- companies with less than N25million gross turnover are exempted from paying tax or minimum tax on their profits.
Year Introduced
2020
Legal Document/ Legal Reference Instrument
Sections 23(1)(o)(i), 40 and 105 of CITA 2004 (As amended by Sections 9, 16 and 22 of Finance Act 2019)
Duration/ Mode
Continuously, subject to future amendments
Sector
Companies in all sectors
Federal or State Level
Federal
Implementation Agency
FIRS
Eligibility Criteria
i. A company must comply with tax registration provisions
ii. A company must file tax returns to FIRS
iii. A company must meet the definition of a small company in Section 105 of CITA 2004 (As amended in Section 22 of the Finance Act 2019)
Awarding Agency
FIRS

Description of Incentive Benefits
Medium sized companies- companies with gross turnover between N25m and N100m are subject to 20% CIT.
Year Introduced
2020
Legal Document/ Legal Reference Instrument
Sections 40 and 105 of CITA 2004 (As amended by Sections 16 and 22 of Finance Act 2019
Duration/ Mode
Continuously, subject to future amendments
Sector
Companies in Agricultural Sector
Federal or State Level
Federal
Implementation Agency
FIRS
Eligibility Criteria
i. A company must comply with tax registration provisions
ii. A company must file tax returns to F
Awarding Agency
FIRS

Description of Incentive Benefits
Exemption of dividends received from small companies in the manufacturing sector in the first 5 years of their operations
Year Introduced
2020
Legal Document/ Legal Reference Instrument
Section 23(1)(o)(ii) of CITA 2004 (As amended by Section 9 of Finance Act 2019)
Duration/ Mode
Continuously, subject to future amendments
Sector
Companies in Manufacturing Sector
Federal or State Level
Federal
Implementation Agency
FIRS
Eligibility Criteria
i. The company must be a small company in accordance with Section 105 of CITA 2004 (As amended by Section 22 of Finance Act 2019)
ii. A company must file tax returns to FIRS
iii. A company must be into manufacturing
Awarding Agency
FIRS

Description of Incentive Benefits
Exemption of profits of any Nigerian company in respect of goods exported from Nigeria, if the proceeds of such exports are utilised for the purchase of raw materials, plant equipment and spare parts.
Year Introduced
2020
Legal Document/ Legal Reference Instrument
Section 23(1)(q) of CITA 2004 (As amended by Sections 9, of Finance Act 2019)
Duration/ Mode
Continuously, subject to future amendments
Sector
Companies in Exporting Sector
Federal or State Level
Federal
Implementation Agency
FIRS
Eligibility Criteria
i. A company must be a Nigerian exporting goods from Nigeria
ii. The company must utilise its export proceeds to purchase raw materials, plant equipment and spare parts
Awarding Agency
FIRS

Description of Incentive Benefits
Exemption of dividend and rental income received by a real estate investment company on behalf of its shareholders.
Year Introduced
2020
Legal Document/ Legal Reference Instrument
Section 23(1)(s) of CITA 2004 (As amended by Sections 9 of Finance Act 2019)
Duration/ Mode
Continuously, subject to future amendments
Sector
Companies in Real Estate Sector
Federal or State Level
Federal
Implementation Agency
FIRS
Eligibility Criteria
i. The company must have distributed a minimum of 75% of the dividend and rental income.
ii. Such distribution must be made within 12 months of the end of the financial year in which the dividend or rental income was earned.
Awarding Agency
FIRS

Description of Incentive Benefits
Interest on any loan granted by a bank on or after 1 January 1977 to a company engaged in—
(a) primary agricultural production, or
(b) the fabrication of any local plant and machinery; or
(c) providing working capital for any cottage industry established by the company, shall be exempted from tax.
Year Introduced
2021
Legal Document/ Legal Reference Instrument
Section 11(2)) of CITA 2004 (As amended by Section 6 of Finance Act 2020)
Duration/ Mode
Continuously, subject to future amendments
Sector
Companies in Agricultural Sector, Fabrication Sector & Cottage Industrial Sector
Federal or State Level
Federal
Implementation Agency
FIRS
Eligibility Criteria
i. The moratorium giving must not be less than 12 months
ii. The rate of interest on the loan must not be more than the base lending rate at the time the loan was granted, refinanced or otherwise restructured.
Awarding Agency
FIRS

Description of Incentive Benefits
Interest payable on any loan granted by a bank on or after 1 April, 1980 for the purpose of manufacturing goods for export, shall be exempted from tax.
Year Introduced
2007
Legal Document/ Legal Reference Instrument
Section 11(5) of CITA 2004 (As amended)
Duration/ Mode
Continuously, subject to future amendments
Sector
Companies in Manufacturing of Exports Sector
Federal or State Level
Federal
Implementation Agency
FIRS
Eligibility Criteria
i. The company must provide a certificate issued by the Nigerian Export Promotion Council (NEPC) stating that the level of export specified has been achieved by the company.
ii. NIPC must certifiy that no less than one half of its manufactured goods disposed of in its year of account is sold outside Nigeria and is not re-exported to Nigeria.
Awarding Agency
FIRS

Description of Incentive Benefits
Where a company is engaged in a trade or business of gas utilisation in downstream operations, the company shall be granted an initial tax-free period of 3 years which may, subject to the satisfactory performance of the business, be renewed for an additional period of 2 years.
Year Introduced
2021
Legal Document/ Legal Reference Instrument
Section 39(1)(a) of CITA 2004 (As amended by Section 14(a) of Finance Act 2020)
Duration/ Mode
Continuously, subject to future amendments
Sector
Companies in the Gas Sector
Federal or State Level
Federal
Implementation Agency
FIRS
Eligibility Criteria
i. This incentive is claimable not more than once by the same company.
ii. The company must perform satisfactorily for the renewal of 2 years tax-free period.
iii. The tax-free period of a trade or business shall start on the day the trade or business commences production as certified by the Ministry of Petroleum Resources (S.39(2) of CITA (As amended by S.14(b) of Finance Act 2020)).
iv. Any company formed from reorganisation, restructuring, buy-back or other similar schemes out of a company which has already enjoyed this incentive shall not be entitled to it
v. This section does not apply with respect to any company that has claimed an incentive for trade or business of gas utilization under any law in Nigeria, including PPTA or ID(ITR)A in respect of the same qualifying capital expenditure Resources (S.39(1)(a)(iii) of CITA (As amended by S.11 of Finance Act 2021)).
Awarding Agency
FIRS

Description of Incentive Benefits
Where a company is engaged in a trade or business of gas utilisation in downstream operations, the company shall be granted an additional investment allowance of 35% which shall not reduce the value of the asset.
Year Introduced
2007
Legal Document/ Legal Reference Instrument
Section 39(1) (b) of CITA 2004 (As amended)
Duration/ Mode
Continuously, subject to future amendments
Sector
Companies in the Gas Sector
Federal or State Level
Federal
Implementation Agency
FIRS
Eligibility Criteria
A company which claims this incentive shall not claim additional investment allowance of 15% which shall not reduce the value of the asset (S.39(1)(c)(ii) of CITA)
Awarding Agency
FIRS

Description of Incentive Benefits
Where a company is engaged in a trade or business of gas utilisation in downstream operations, the company shall be granted accelerated capital allowances after the tax-free period, as follows, that is
(i) an annual allowance of 90% with 10% retention, for investment in plant and machinery;
(ii) an additional investment allowance of 15% which shall not reduce the value of the asset
Year Introduced
2007
Legal Document/ Legal Reference Instrument
Section 39(1) (c) of CITA 2004 (As amended)
Duration/ Mode
Continuously, subject to future amendments
Sector
Companies in the Gas Sector
Federal or State Level
Federal
Implementation Agency
FIRS
Eligibility Criteria
A company cannot claim additional investment allowance of 35% under S.39(1)(b) and still claim additional investment allowance of 15% under S,39(1)(c)(ii)
Awarding Agency
FIRS

Description of Incentive Benefits
Where a company is engaged in a trade or business of gas utilisation in downstream operations, the company shall be granted tax free dividends during the tax free period,
Year Introduced
2007
Legal Document/ Legal Reference Instrument
Section 39(1) (d) of CITA 2004 (As amended)
Duration/ Mode
Continuously, subject to future amendments
Sector
Companies in the Gas Sector
Federal or State Level
Federal
Implementation Agency
FIRS
Eligibility Criteria
i. This is where the investment for the business was in foreign currency.
ii. Where the introduction of imported plant and machinery during the period was not less than 30% of the equity share capital of the company
Awarding Agency
FIRS

Description of Incentive Benefits
The minimum tax to be levied and paid shall be 0.5% of gross turnover of the company less franked investment income, where a company’s ascertained total profits results in no tax payable or tax payable which is less than the minimum tax
Year Introduced
2021
Legal Document/ Legal Reference Instrument
Section 33(2) of CITA 2004 (As amended by Section 10 of Finance Act 2021)
Duration/ Mode
Continuously, subject to future amendments
Sector
Companies in all sectors
Federal or State Level
Federal
Implementation Agency
FIRS
Eligibility Criteria
Where a company’s ascertained total profits results in no tax payable or tax payable which is less than the minimum tax
Awarding Agency
FIRS

Description of Incentive Benefits
The applicable minimum tax is reduced to 0.25% on gross turnover for tax returns prepared and filed with respect to financial years ending on any date between 1 January 2020 and 31 December 2021, both days inclusive, where a company’s ascertained total profits results in no tax payable or tax payable which is less than the minimum tax
Year Introduced
2022
Legal Document/ Legal Reference Instrument
Section 33(2)(a) of CITA 2004 (As amended by Section 10 of Finance Act 2021)
Duration/ Mode
2022
Sector
Companies in the Gas Sector
Federal or State Level
Federal
Implementation Agency
FIRS
Eligibility Criteria
i. Where a company’s ascertained total profits results in no tax payable or tax payable which is less than the minimum tax
ii. Where the company had filed its relevant tax returns for any year of assessment falling on any date between 1 January 2020 and 31 December 2021, both days inclusive, the applicable minimum tax is reduced to 0.25% for tax returns prepared and filed for any two accounting periods ending on any date between 1 January 2019 and 31 December 2021, both days inclusive.
Awarding Agency
FIRS