SabiCalc
WHT · 2024 Regulations

Withholding Tax Calculator Nigeria. The right WHT to deduct, every time.

Invoice or payment amount
₦
What is the payment for?
Who is being paid?rates differ for some categories
Supplier has a TIN?no TIN doubles the rate
WHT to deduct · company · 5%
₦50,000
Invoice amount₦1,000,000
WHT rate applied5%
Supplier receives₦950,000
₦950,000
is what the supplier actually receives after you deduct and remit the WHT. The deduction is not an extra tax on you as the payer: you hold it back from the invoice and remit it in the supplier's name.

Withholding tax rates in Nigeria (2026)

Rates for payments to Nigerian residents under the Deduction of Tax at Source (Withholding) Regulations 2024, in force since 1 January 2025 and carried into the Nigeria Tax Act 2025 regime. A supplier without a TIN suffers double the listed rate.

Payment typeCompaniesIndividuals
Dividends10%10%
Interest10%10%
Rent, hire or lease10%10%
Royalties10%5%
Directors' fees15%15%
Professional, consultancy, management or technical fees5%5%
Commission5%5%
Construction of roads, bridges, buildings or power plants2%2%
Other construction and related activities5%5%
Supply of goods and materials2%2%
Any other service not separately listed2%2%

Non-resident recipients are outside this table: most of their rates sit at 10%, directors' fees reach 20%, and double tax treaties can reduce them. Source: First Schedule to the 2024 Regulations.

How this calculator works

Withholding tax is not a separate tax. It is income tax collected early: when a business pays for rent, services, contracts or goods, it deducts a slice at the rate set for that type of payment and remits the slice to the tax authority in the supplier's name. The supplier then offsets the amount against their own income tax bill using the credit note. This calculator takes the invoice amount, the payment type and whether the recipient is a company or an individual, and returns the deduction, the effective rate and what the supplier actually receives.

The rates here are the ones in force since 1 January 2025, when the Deduction of Tax at Source (Withholding) Regulations 2024 replaced the old patchwork. The headline changes: professional, consultancy, management and technical fees dropped to 5%, supply of goods fell to 2%, core construction fell to 2%, directors' fees rose to 15%, and a supplier with no TIN now suffers double the rate. Dividends, interest and rent stayed at 10%. If a rate changes at a future review, the table above is the single source this page and the calculator both read from.

Two boundaries worth knowing. Small businesses with turnover of ₦25 million or less do not have to deduct WHT where the supplier has a TIN and the month's payments to them stay within ₦2 million. And this tool covers payments to Nigerian residents; non-resident recipients have their own column in the Regulations and possible treaty relief, which a payroll or tax adviser should confirm. Estimates only, not tax advice.

A worked example: paying a company ₦1,000,000 for professional services attracts WHT at 5%, so you remit ₦50,000 to the tax authority and pay the supplier ₦950,000. If the supplier has no TIN the rate doubles to 10% and they receive ₦900,000 instead. The deduction is a prepayment of the supplier's own tax, not an extra cost to you.

Frequently asked questions

What is the withholding tax rate on rent in Nigeria?
10%, whether the landlord is a company or an individual. On ₦1,000,000 of rent you deduct ₦100,000 and pay the landlord ₦900,000, then remit the ₦100,000 in the landlord's name with their TIN. The same 10% applies to hire and lease payments.
What is the WHT rate on professional or consultancy fees?
5% for payments to Nigerian residents, companies and individuals alike, under the 2024 Regulations. That is a cut from the old 10% rate for companies. The 5% also covers management fees, technical fees and commission. Payments to non-residents for the same services carry 10%.
Is withholding tax an extra tax?
No. WHT is an advance collection of income tax: the payer deducts it and remits it in the supplier's name, and the supplier claims it as a credit against their income tax for the year using the credit note. The exceptions are certain passive receipts, notably dividends and interest paid to individuals, where the deduction is treated as the final tax.
When must deducted WHT be remitted?
By the 21st day of the following month for deductions payable to the federal tax authority, and by the 10th day of the following month for deductions due to a state tax authority, such as those from payments to individuals. Late remittance attracts penalties and interest on top of the tax.
Who is exempt from deducting withholding tax?
Small businesses with annual turnover of ₦25 million or less need not deduct WHT on a payment, provided the supplier has a valid TIN and the total payments to that supplier are ₦2 million or less in the month. Across-the-board exemptions also cover, among others, compensating payments under registered securities lending and supplies where the transaction is below the threshold set in the Regulations.
What happens if the supplier has no TIN?
The Regulations double the rate: a supplier without a Tax Identification Number suffers WHT at twice the standard rate on that payment. The calculator above has a toggle for this. It is usually far cheaper for a supplier to register for a TIN than to keep losing double WHT on every invoice.

More SabiCalc tools

Method: WHT = amount × rate for the payment type and recipient (First Schedule, Deduction of Tax at Source (Withholding) Regulations 2024, effective 1 Jan 2025). No TIN doubles the rate. Resident recipients only; fees, VAT interaction and treaty relief not modelled. Not tax advice.