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The short answer
A Nigerian company paying a dividend to a shareholder resident in Canada deducts withholding tax at 10%, the rate PwC lists for dividends to non-residents (reviewed 29 May 2026). The Canada-Nigeria treaty allows 12.5% or 15% depending on the shareholding, but where the domestic rate is lower, the lower 10% applies. To send the money to Canada through official channels, the bank will look for a CCI on the original investment and evidence the tax was paid.
Owning a Nigerian company from Canada usually means one of two things: you built it before you moved, or you invested in a family business since. Either way, a dividend is the cleanest way to take profit out once the company has paid its own tax. The questions are how much Nigeria keeps, whether the money can leave in dollars, and what you tell the CRA.
Step 1: the company pays its own tax first
A dividend is paid from profits after company income tax. Directors declare it under the company's articles and Nigerian company law, normally after the accounts are approved. If the company has not filed its returns, sort that out first; banks ask for evidence of tax compliance before they remit dividends abroad.
Step 2: Nigerian withholding tax
| Item | Rate | Source |
|---|---|---|
| Nigerian WHT on dividends to non-residents, corporate and individual | 10% | PwC, reviewed 29 May 2026 |
| Canada-Nigeria treaty limit on dividends | 12.5% or 15%, depending on the recipient's voting stake | Udo Udoma & Belo-Osagie, June 2022 |
| Rate applied | 10%, because the domestic rate is not higher than the treaty limit | Udo Udoma & Belo-Osagie; PwC |
Udo Udoma & Belo-Osagie's 2022 note explains that Nigeria's older treaties, including Canada's, set dividend rates of 12.5% or 15%, and that where a treaty rate is higher than the domestic rate, the lower domestic 10% applies. In practice a Canadian-resident shareholder sees 10% deducted. The company pays the WHT to the Nigeria Revenue Service and should give you a receipt or credit note; keep it, because it is your evidence for the Canadian foreign tax credit.
Worked example
Example only. Your Lagos company declares ₦10,000,000 to you. It withholds 10%, ₦1,000,000, and pays you ₦9,000,000. If you convert, the Canadian dollar amount depends on the rate on the day; check the rate before you approve any conversion rather than relying on a figure in an article.
Step 3: getting it out of Nigeria
Mondaq's 2024 guide says a Certificate of Capital Importation, issued by an authorised dealer bank when foreign capital came in, is what enables repatriation of dividends in convertible currency, and that tax clearance is needed for dividend remittances. That creates two situations:
- You invested from abroad through a Nigerian bank and a CCI was issued: the bank can sell foreign currency for the net dividend against the CCI, the WHT receipt and the company's documents.
- You founded the company while living in Nigeria with naira, or your money went in informally: there may be no CCI. The dividend can still be paid in naira into a Nigerian account; moving it abroad then follows the rules for your own funds rather than the investor route.
For how the CCI is created, see NIPC registration and the CCI.
Step 4: the Canadian side
As a Canadian resident you report the dividend on your Canadian return, and the Nigerian tax withheld is the starting point for a foreign tax credit. How the credit is worked out, and what records the CRA expects, is in claiming a foreign tax credit for Nigerian withholding tax. If your Nigerian shares and accounts are large enough to need foreign property reporting, see the T1135 and Nigerian assets. For what the treaty covers more broadly, read the Canada-Nigeria tax treaty.
Dividend, salary or loan?
Owners abroad sometimes ask whether to take money out another way. PwC's table gives the same 10% non-resident WHT on dividends and interest, and 10% on fees such as consultancy and management for non-resident companies. A dividend comes out of profit that has already been taxed; a director's fee or interest may be deductible for the company but is taxed differently in your hands, and transfer pricing rules can apply between related parties. There is no general answer, which is why a short session with an adviser who knows both countries is worth paying for before the first large payment.
Checklist
- Company tax returns filed and accounts approved.
- Board resolution declaring the dividend.
- 10% WHT deducted, paid to the NRS and receipted to you.
- CCI on file if you want the bank to remit in foreign currency.
- WHT receipt kept for your Canadian return.
Where Pryme fits
If the dividend stays in naira, a Pryme Personal or Business Account holds it alongside USD, GBP and EUR, and Swap converts only when you choose, showing the rate and fee before you approve. Outside Nigeria these services are provided through regulated partners.
Questions people ask
How much tax does Nigeria take on dividends paid to Canada?
10% withholding tax, the domestic rate for non-residents per PwC (May 2026), which is below the treaty's 12.5% or 15% limit.
Do I pay Canadian tax on Nigerian dividends?
As a Canadian resident you report them, and the Nigerian WHT is the basis for a foreign tax credit. Take advice on your own figures.
Can my Nigerian company pay my dividend in dollars?
The bank can sell foreign currency for remittance where a CCI covers the investment and tax is cleared; otherwise it is paid in naira.
What is the Canada-Nigeria treaty rate on dividends?
12.5% or 15% depending on the voting stake, per Udo Udoma & Belo-Osagie (2022); the lower domestic 10% applies.
Sources
- PwC Worldwide Tax Summaries: Nigeria, corporate withholding taxes (reviewed 29 May 2026) · accessed Oct 2026
- Udo Udoma & Belo-Osagie via Mondaq: WHT rates on dividend, interest and royalty payments to residents of Nigeria's treaty partners (10 Jun 2022) · accessed Oct 2026
- Mondaq (Adeola Oyinlade): How to repatriate capital and profits in Nigeria (19 Sep 2024) · 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.