What is withholding tax in Nigeria?

An advance payment of the vendor's income tax, deducted by the payer at source and remitted to the Nigeria Revenue Service. It is credited against the vendor's final tax bill, so it is not an extra cost to them.

What are the WHT rates in 2026?

Under the Deduction of Tax at Source (Withholding) Regulations 2024: 5% on professional, consultancy and management fees and on commission; 2% on supply of goods and general services; 10% on rent, dividends, interest and royalties paid to companies; 15% on directors' fees. Vendors without a TIN are deducted at double the rate.

Do small companies have to deduct WHT?

A small company may skip deduction on a payment below ₦2 million when the vendor has a valid TIN. Above that, or without a TIN, deduct as normal.

When must WHT be remitted?

By the 21st of the month following the month of payment, with a schedule of the vendors it was deducted from.

What if the vendor refuses to accept a net payment?

Show them this calculation and the remittance evidence. The deduction is the law, and the credit note lets them offset it against their own tax.

Nigeria Withholding Tax Calculator

Pick what the payment is for, say whether the vendor is a company or a person, and see what to deduct, what to pay, and the remittance date.

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Updated for 2026
Updated September 2026

Payment amount (before WHT)What the payment is for

The vendor is

Vendor has a TINWithout a TIN the rate doubles under the 2024 regulations.Payment date

Withholding tax to deduct

₦25,000.00

5.0% on ₦500,000 · professional, consultancy or management fees

Pay the vendor: ₦475,000.00
Remit to NRS: ₦25,000.00
Remit by: 21 October 2026

If you are a small company, you may skip deduction on this payment: it is under ₦2,000,000 and the vendor has a TIN.

WHT is a credit against the vendor's own tax, not an extra cost. Give them the remittance evidence so they can claim it.

Rates per the Deduction of Tax at Source (Withholding) Regulations 2024, in force since January 2025. Non-resident recipients are generally deducted at 10%.

Rate table

Payment type	Company	Individual
Professional, consultancy or management fees	5%	5%
Commission or brokerage	5%	5%
Supply of goods or materials	2%	2%
General services (non-professional)	2%	2%
Construction (roads, bridges, buildings)	2%	2%
Other construction and installation	5%	5%
Rent, hire or lease	10%	10%
Dividend or interest	10%	10%
Royalty	10%	5%
Directors' fees	n/a	15%

Deduction of Tax at Source (Withholding) Regulations 2024, in force from 1 January 2025. Non-residents are generally 10%.

How it works

01
Enter the payment amount
The gross amount on the vendor's invoice, before any deduction.
02
Pick what it is for
Services and commission are 5%, goods 2%, rent and dividends 10%. The list covers the common cases.
03
Say who the vendor is
Company or individual, and whether they have a TIN. No TIN doubles the rate.
04
Pay net, remit by the 21st
The calculator shows what to pay the vendor and the date the deduction is due to the NRS.

What makes it different

Current regulations

Rates from the Deduction of Tax at Source (Withholding) Regulations 2024, not the older schedule still on many blogs.

The TIN rule

Recipients without a TIN are deducted at double the rate. The calculator makes that visible before you pay.

Small-company exemption

A small company may skip deduction on payments under ₦2 million to a vendor with a TIN. The page flags when that applies.

Questions people ask

What is withholding tax in Nigeria?: An advance payment of the vendor's income tax, deducted by the payer at source and remitted to the Nigeria Revenue Service. It is credited against the vendor's final tax bill, so it is not an extra cost to them.
What are the WHT rates in 2026?: Under the Deduction of Tax at Source (Withholding) Regulations 2024: 5% on professional, consultancy and management fees and on commission; 2% on supply of goods and general services; 10% on rent, dividends, interest and royalties paid to companies; 15% on directors' fees. Vendors without a TIN are deducted at double the rate.
Do small companies have to deduct WHT?: A small company may skip deduction on a payment below ₦2 million when the vendor has a valid TIN. Above that, or without a TIN, deduct as normal.
When must WHT be remitted?: By the 21st of the month following the month of payment, with a schedule of the vendors it was deducted from.
What if the vendor refuses to accept a net payment?: Show them this calculation and the remittance evidence. The deduction is the law, and the credit note lets them offset it against their own tax.

Read the rule behind the number

Every month, without the spreadsheet

Stop recalculating this every month.

ereQa works VAT, withholding tax and PAYE from the invoices and bills you already record, and keeps the remittance dates in one place.

See ereQa

Rate table

How it works

Enter the payment amount

Pick what it is for

Say who the vendor is

Pay net, remit by the 21st