Source: https://rivet.global/blog/nigeria-development-levy-2026-companies
Published: 2026-10-18 · Updated: 2026-10-18 · By Alexia M.

# Nigeria's 4% development levy from 2026: who pays it

Nigeria's 4% development levy under the Nigeria Tax Act 2025: which companies pay it, the small company exemption, what it replaces and the 30% company tax.

## Key takeaways

- The Nigeria Tax Act 2025, in force from 1 January 2026, imposes a 4% development levy on the assessable profits of companies other than small companies and non-residents.
- It consolidates older charges, including the tertiary education tax and several sector levies.
- Company income tax is 30% for companies that are not small companies.
- Most sources define small companies as those with turnover up to ₦100 million and fixed assets under ₦250 million; check the Act's text.

"Nigeria corporate tax 2026" sits beside "nigeria corporate tax rate" in Google's suggestions. The 2026 answer has a new line: the development levy.

## The rates from 2026

| Company | Company income tax | Development levy |
|---|---|---|
| Small company | 0% | Exempt |
| Other companies | 30% | 4% of assessable profits |
| Non-resident companies | Rules for non-residents | Exempt from the levy |

## What it replaces

The levy consolidates older charges: the tertiary education tax and contributions such as the IT levy, NASENI levy and Police Trust Fund. Companies that paid several of them now pay one.

## The small company test

Most sources, including PwC, describe small companies as those with turnover up to ₦100 million and fixed assets under ₦250 million. A few commentaries cite a lower turnover figure. Check the Act's text with your adviser. See [Nigeria tax reform 2026 for small companies](/blog/nigeria-tax-reform-2026-small-companies).

## An example

A Lagos company with ₦600 million turnover and ₦120 million assessable profit pays 30% company income tax on its total profits and a 4% levy of ₦4.8 million.

## Records

The Nigeria Revenue Service will expect clean records of revenue, including foreign currency income converted at the right rate.

## Paying into Nigeria: the local rail

| What | Detail |
|---|---|
| Local rail | NIBSS Instant Payment (NIP) |
| Run by | Nigeria Inter-Bank Settlement System |
| Settlement | Seconds, 24/7 |
| Published fee | The CBN caps the sender's charge at ₦10 up to ₦5,000, ₦26 up to ₦50,000 and ₦50 above that |

Source: [NIBSS: NIP](https://nibss-plc.com.ng/). Checked when this guide was last updated; the scheme's own page has the current figures.

## Where Rivet fits

Rivet serves registered companies in supported countries, including foreign companies owned by Nigerian founders where eligible, and keeps every receipt and conversion on one ledger. Rivet does not advise Nigerian-registered companies to hold funds offshore. Rivet is not a bank; regulated partner institutions hold the funds. See [register a business in Nigeria with the CAC](/blog/register-business-nigeria-cac).

## Questions

### What is Nigeria's development levy?

A 4% levy on assessable profits of companies other than small companies and non-resident companies, introduced by the Nigeria Tax Act 2025.

### What does it replace?

Several earlier levies, including the tertiary education tax and contributions such as the IT levy and NASENI levy.

### Who is exempt?

Small companies, which most sources define as turnover up to ₦100 million and fixed assets below ₦250 million. Some commentaries give a different figure; check the Act.

### When is it paid?

Alongside company income tax returns. Ask your adviser for the filing mechanics.