AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Under the Nigeria Tax Act 2025, the old turnover-based minimum tax no longer applies, so a loss-making company is not charged tax on turnover simply because it made no profit. The only floor now is a 15% minimum effective tax rate for companies with turnover of ₦50 billion or more (or part of large multinational groups), and small companies pay 0% company income tax.
The short answer
Before 2026, a Nigerian company with little or no taxable profit could still owe a minimum tax worked out on its turnover. The tax reforms that took effect on 1 January 2026 changed that. A Mondaq summary by WTS Blackwoodstone (January 2026) states that minimum tax has been removed and that small companies are exempt from company income tax and the development levy. PwC's Nigeria corporate tax summary, reviewed in May 2026, describes no general turnover-based minimum tax for Nigerian companies.
So if your company makes a genuine tax loss in 2026, there is no turnover-based charge waiting for it. What remains is a narrow floor for very large companies and an unchanged duty to file.
The new floor: 15% minimum effective tax rate
PwC sets out the replacement. A minimum effective tax rate (ETR) of 15% applies to:
- Nigerian companies with turnover of ₦50 billion or more; and
- companies in multinational groups with aggregate group turnover of at least EUR 750 million.
If such a company's effective tax rate falls below 15%, it recomputes and pays the extra tax needed to reach 15%. The ETR is measured on profit before tax in the audited accounts, adjusted for some items such as franked investment income and unrealised exchange differences. Covered taxes include income tax and the development levy.
Two points matter for loss-makers. The ETR is a percentage of profit, so it does not create tax on turnover where there is no profit. And the threshold is far above most Nigerian SMEs. If you are below ₦50 billion turnover and not in a large foreign group, the 15% floor does not touch you.
The small-company carve-out
A small company pays 0% company income tax. PwC defines it as a company with annual gross turnover of ₦100 million or less and total fixed assets not exceeding ₦250 million. Professional service firms are excluded from the small-business definition, according to the Forvis Mazars and Techpoint summaries of the Act. Small companies are also outside the 4% development levy.
| Company type | Company income tax | Development levy | Minimum ETR |
|---|---|---|---|
| Small (turnover ≤ ₦100m, fixed assets ≤ ₦250m, not professional services) | 0% | Not charged | No |
| Other companies below ₦50bn turnover | 30% of taxable profit | 4% of assessable profit | No |
| Turnover ₦50bn+ or large MNE group | 30% | 4% | Yes, top-up to 15% |
For the exact conditions, see small company exemption conditions and the development levy and small companies.
You still file, even with a loss
A loss does not remove the return. Section 11(1) of the Nigeria Tax Administration Act 2025 requires every company to file a self-assessment return at least once a year "whether or not it is liable to pay tax". The return contains audited financial statements (a small company may instead attach a statement of accounts attested by the taxpayer), tax and capital allowance computations, evidence of payment, and "computation of the effective tax rate and additional tax payable, where applicable".
The deadline for a company in business for more than 18 months is six months after its accounting year end (s.11(5)). Late filing costs ₦100,000 for the first month and ₦50,000 for each further month (s.101). A loss-making company that skips filing therefore turns a nil tax year into a penalty bill.
Why filing the loss matters
Filing records the loss on the authority's systems. If you later rely on that loss, or on unused capital allowances, you will need the filed computations and the records behind them. Keep them for at least six years after the year of assessment (NTAA s.31). How losses are carried forward is set by the Nigeria Tax Act; confirm the current rules with your adviser rather than relying on the old regime.
Worked example
- It meets the small company test (turnover ≤ ₦100m, assets ≤ ₦250m), so company income tax is 0%.
- There is no turnover-based minimum tax under the 2025 framework.
- It is far below the ₦50 billion ETR threshold.
- It must still file its return within six months of year end, with an attested statement of accounts if it chooses that option.
If the same company had ₦150 million turnover, it would no longer be small. With a tax loss it would owe no company income tax for the year, but it would file the full return with audited accounts.
Questions to settle with your accountant
- Does the company meet both small-company tests on the last day of the year, using the figures in the accounts?
- Is any part of the business a professional service that removes the small-company status?
- Are the loss and unused capital allowances recorded correctly in the return and on the NRS platform?
- Is the return due date diarised, given that a nil-tax year still carries the late-filing penalty?
Where Pryme fits
Pryme Business Accounts include a Finance agent that can prepare a filing calendar and pull statements together for your accountant; a person approves anything above a set ceiling. The tax position itself is for you and your adviser. This article is information, not tax advice.
Questions people ask
Do loss-making companies pay minimum tax in Nigeria in 2026?
No turnover-based minimum tax applies under the Nigeria Tax Act 2025, according to PwC and WTS Blackwoodstone summaries. Only companies with turnover of ₦50bn or more, or in large multinational groups, face a 15% minimum effective tax rate.
What is the minimum effective tax rate in Nigeria?
15%, for companies with turnover of ₦50 billion or more and members of multinational groups with group turnover of EUR 750 million or more.
Does a company with no profit still file a tax return?
Yes. NTAA 2025 s.11(1) requires every company to file a self-assessment return each year whether or not it owes tax.
Is a small company exempt from company income tax?
Yes, a small company (turnover ≤ ₦100m, fixed assets ≤ ₦250m, not a professional services firm) pays 0% CIT and no development levy.
Sources
- PwC Worldwide Tax Summaries: Nigeria, taxes on corporate income (reviewed 29 May 2026) · accessed Oct 2026
- Mondaq (WTS Blackwoodstone): The Nigerian tax reforms, what it means for MSMEs (22 Jan 2026) · accessed Oct 2026
- Nigeria Tax Administration Act 2025 (gazette copy) · accessed Oct 2026
- Forvis Mazars: 2025 NTA VAT key business changes (16 Mar 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.