PAYE in Nigeria for Employers (2026)
Educational overview onlyânot legal or tax advice. Verify requirements on official portals and with a qualified adviser.
PAYE is the system employers use to deduct personal income tax from employeesâ salaries and pay it to the appropriate tax authority. Under the Nigeria Tax Act 2025 framework (widely applied from 1 January 2026), employment income is generally administered where the employee is residentâoften through state internal revenue servicesâwhile companies and many federal levies sit with the Nigeria Revenue Service (NRS). This page summarizes employer obligations at a high level; always confirm filing channels on official portals.
Who must operate PAYE?
Typically, any employer paying salaries, wages, or similar remuneration must register for PAYE with the relevant authority, maintain payroll records, deduct the correct tax each month, and remit on schedule. Rules for which state or territory receives the remittance depend on employee residence and facts of the employmentâdo not assume Lagos vs Abuja without checking.
For the statutory framework, see our Nigerian Tax Act 2025 overview and your state or FCT filing hub page for official links.
Registration and payroll records
Employers usually need a valid taxpayer identity for the business and must keep payroll details: gross pay, allowable items, net pay, and tax deducted. Many states offer e-filing or designated banksâuse the official site for your jurisdiction.
- Link employeesâ TIN and identity data where the system requires it.
- Align with how to get a TIN in Nigeria if staff need to obtain or update identifiers.
Coordination with NRS (federal)
Corporate income tax and other federal business taxes are separate from monthly PAYE remittance to state revenue services. For company returns and NRS processes, use How to file a business tax return in Nigeria and nrs.gov.ng.