Transfer Pricing in Nigeria
Educational overview only—not legal or tax advice. Verify requirements on official portals and with a qualified adviser.
When related parties—same group companies, directors’ entities, or other connected persons—trade goods, services, or loans between themselves, tax authorities worry about profit shifting. Transfer pricing (TP) rules require that those dealings be priced as if the parties were independent (“arm’s length”). Nigeria’s framework lives in tax law and NRS guidance; this page explains why TP exists and what good compliance looks like at a high level.
Who should care
Groups with cross-border or material domestic related-party flows, management fees, royalties, or intercompany loans typically need TP analysis. Small purely local businesses with no related-party trading may have little to document—but facts matter.
Documentation and benchmarking
Expect to maintain master files and local files when thresholds apply, supported by comparables and economic analysis. Auditors and revenue officers test whether your story matches the data.
Link to audits and CIT
TP adjustments can change taxable profit for CIT purposes. Read Corporate income tax overview and Tax audits; follow current NRS publications for forms and deadlines.
Professional support
TP is specialised—use qualified transfer pricing and legal advisers for structuring and defence work.