Lagos Business Taxes in 2026: LIRS, PAYE, Consumption Tax and Land Use Charge

A business in Lagos answers to two tax authorities. The Nigeria Revenue Service (NRS, formerly FIRS) collects the federal taxes on companies. The Lagos State Internal Revenue Service (LIRS) collects the taxes on people — employees, sole traders, partners — plus a few state levies. Knowing which one you owe saves you paying the wrong office and spotting the demand notice that is not real.

Last checked 15 October 2026. State taxes and deadlines from LIRS’s published tax types and FAQ; federal rules from the Nigeria Tax Act 2025 and the Nigeria Tax Administration Act 2025. Where LIRS and the Act differ, both are shown.

Who collects what

The rule of thumb from the Nigeria Tax Administration Act 2025: the NRS administers companies, VAT and the development levy; the state where an individual lives administers that individual. A limited company in Ikeja therefore files its company tax with the NRS but remits its staff’s PAYE to LIRS.

PAYE for employers

• Where: the LIRS eTax portal, etax.lirs.net. LIRS no longer accepts manual filing.
• Monthly remittance: LIRS publishes the 10th of the month after the salary month. Section 107 of the Nigeria Tax Administration Act 2025 says tax deducted at source is due by the 21st. Remitting by the 10th satisfies both.
• Annual employer return: by 31 January for the previous year, listing every employee’s pay and tax (section 14 of the Act). This is due even if every month was remitted on time.
• Where your staff live decides it: employers remit to Lagos for staff who live in Lagos, wherever the head office is.
• Penalties: failing to file a return is ₦100,000 for the first month and ₦50,000 for each month after (section 101). Deducting and not remitting adds 10% a year and interest at the Central Bank rate (section 107).

Work out each employee’s figure with the PAYE calculator, which uses the 2026 bands: the first ₦800,000 a year tax-free, then 15% rising to 25%.

Sole traders and partnerships

If you trade under a business name or as a partnership, your profit is taxed as your personal income, and you file with LIRS — not the NRS. File a self-assessment (Form A) on eTax by 31 March for the previous year. You do not need to wait for a notice; the Act requires you to file whether or not you were asked. For the 2025 year LIRS extended the deadline to 14 April 2026; treat that as a one-off.

Keep the records that back up the return for six years. See what the law requires you to keep.

Withholding tax on payments to individuals

When your business pays an individual or a business name for services, rent or commission, the withholding tax you deduct goes to LIRS. LIRS publishes 30 days for remittance; the Act sets the 21st of the following month, so the 21st is the safe date. Rates follow the national table — 10% on rent, 5% on most professional fees. See the full rate table. Pay only through eTax or LIRS-designated banks.

The 5% consumption tax

Hotels, restaurants and event centres in Lagos add a 5% consumption tax to customers’ bills, calculated on the bill excluding VAT and service charge. The customer bears it; the business is the collecting agent and remits it to LIRS monthly. If you run a restaurant, show it as its own line on the bill, separate from 7.5% VAT, and keep the daily sales records that support each month’s remittance.

Business premises levy and signage

LIRS lists a business premises levy for registering and renewing business premises: ₦10,000 to register and ₦5,000 a year to renew in urban areas, ₦2,000 and ₦1,000 in rural areas. Signs and adverts need a permit from the Lagos State Signage and Advertisement Agency (LASAA). Confirm current amounts on the demand notice and with the agency before paying.

Land Use Charge

Property owners pay an annual Land Use Charge based on the assessed value of the property. Lagos released the 2026 bills in March 2026 with a 15% discount for early payment. Tenants do not pay it unless the lease says so; check yours. Pay against the bill’s reference, through the channels printed on it.

Tax Clearance Certificate

You need a Tax Clearance Certificate (TCC) for government contracts, a Certificate of Occupancy, building plan approval and several licences. Individuals apply for an electronic TCC on eTax once the last three years’ returns are filed and assessed and nothing is outstanding. Section 72 of the Nigeria Tax Administration Act 2025 requires the authority to issue it within two weeks of a valid request.

Avoiding touts and fake demands

• Check any demand against your own eTax account before paying it.
• Pay only through eTax, LIRS-designated banks or the official Lagos payment channels — never into a personal account.
• LIRS warns that dealing with touts or holding fake tax documents is a criminal offence.
• If a levy is not on LIRS’s list or a state agency’s official notice, ask in writing which law it is charged under before paying.

ereQa keeps the records these returns are built from — invoices with your Tax ID and VAT, expenses by category, and payroll-ready totals. Start free.

This is general information, not legal or tax advice. Fees, forms and bank rules change; confirm with the agency, your bank or a licensed adviser before you rely on a figure.