WHT · 5 min read · Updated 13 October 2026
Withholding tax rates in Nigeria: contracts, services, rent and dividends
Withholding tax is deducted at source by the payer and remitted to the tax authority. For the recipient it is an advance payment that can be credited against their final income tax — provided they keep the credit notes.
Common resident rates
Rates applied in ActivEdge TaxPrep for resident recipients:
- Construction (roads, bridges, buildings, power plants): 2%
- Supply of goods and other contracts: 2%
- Professional, technical and management services: 5%
- Consultancy: 5%
- Commission: 5%
- Rent, lease and hire: 10%
- Interest: 10%
- Dividends: 10% (a final tax)
WHT deducted vs WHT suffered
If you pay a supplier, you deduct WHT and remit it — that is WHT deducted. If a customer pays you net of WHT, that is WHT suffered, and the credit note is your evidence to claim it against your companies income tax.
Unclaimed credit notes are one of the most common ways companies overpay tax. Match each credit note to the payment and keep a register.
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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