Do freelancers and informal-sector earners pay tax in Nigeria?

Yes — being self-employed, freelance, or working informally doesn't exempt you from tax. Here's how much you owe, and what filing obligation comes with it.

How much do you owe?

Yes. Under NTA §29 and the Presumptive Tax Regulations 2026, turnover below ₦12,000,000.00 owes no presumptive tax; turnover at or above that floor is taxed by default at 1% of turnover, though you may opt out of the presumptive regime and file under full self-assessment instead.

You still have to file an annual return

Being self-employed or working informally doesn't exempt you from filing. Since 2026, every taxpayer — including presumptive-tax filers — must submit an annual return to their State IRS by 31 March (this year's deadline was extended to 14 April), even if no tax is owed. Missing it costs ₦100,000 for the first month, plus ₦50,000 a month after.

Frequently asked questions

Do freelancers/informal-sector earners pay tax differently?

Yes. Under NTA §29 and the Presumptive Tax Regulations 2026, turnover below ₦12,000,000.00 owes no presumptive tax; turnover at or above that floor is taxed by default at 1% of turnover, though you may opt out of the presumptive regime and file under full self-assessment instead.

Is this official tax advice?

No — for guidance only, not tax advice.