The ₦50M Loophole: How your small biz can pay 0% tax legally

Most small business owners in Nigeria spend their time "staying low" to avoid the taxman. But here’s the truth: The law is actually on your side if you're small enough.

What is the ₦50M Small Biz Buff?

The 2026 Reform has raised the threshold for "Small Companies." If your annual turnover (total sales) is under ₦50 Million (it used to be ₦25M), you pay 0% Corporate Income Tax. You are legally exempt!

"But FIRS is chasing me!"

First off, it's now the NRS (Nigeria Revenue Service). Secondly, they aren't chasing you for Corporate Tax if you are under ₦50M. They might be looking for VAT or WHT, but your business profit is safe. The "Loophole" isn't a trick—it's a government incentive to help SMEs grow.

How do I prove I'm under ₦50M?

You need proper bookkeeping. If the NRS audits you and you can't show that your sales were under ₦50M, they will assume you are a "Medium Company" and tax you at 20% or 30%. Keep your receipts!