Corporate Tax · 4 min read · Updated 13 October 2026
The 4% Development Levy under the Nigeria Tax Act 2025
The Nigeria Tax Act 2025 introduced a single Development Levy charged on companies' assessable profits, replacing several separate earmarked levies.
How it works
The levy is charged at 4% of assessable profits. Chargeable gains are excluded from the levy base. Qualifying small companies are not liable.
Worked example
A company with assessable profit of ₦500,000,000 that is not a small company would pay a Development Levy of ₦20,000,000, in addition to companies income tax on its taxable profit.
This guide is general information under the Nigeria Tax Act 2025 and Nigeria Tax Administration Act 2025, not tax advice. Confirm current rules with NRS or a qualified adviser.
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