What is the dividend withholding tax rate in Nigeria?

Nigeria applies a 10% withholding tax on dividends paid to both individuals and companies. The tax is deducted at source by the paying company and remitted to the Federal Inland Revenue Service, so you receive the dividend net of WHT.

Is dividend WHT a final tax in Nigeria?

Yes. For most recipients the 10% withholding tax on dividends is a final tax, meaning the dividend is not taxed again under the Companies Income Tax Act or Personal Income Tax Act. You do not add it back to other income.

When does the reduced 7.5% rate apply?

A reduced rate of 7.5% applies to dividends paid to residents of countries that have a double taxation treaty with Nigeria, such as the United Kingdom, China, and several others. The recipient must qualify under the relevant treaty.

Are franked investment income dividends taxed again?

No. Dividends paid out of profits that have already suffered the 10% WHT are treated as franked investment income and are not subject to further dividend tax when redistributed, avoiding double taxation within the chain.

Does this calculator store my data?

No. All amounts are computed locally in your browser and nothing is sent anywhere, so your details remain private.

Nigeria Dividend Tax Calculator

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This Nigeria dividend tax calculator shows how much withholding tax (WHT) is deducted from a dividend and the net amount you actually receive, based on Nigeria’s flat dividend WHT regime.

How it works

In Nigeria, dividends are subject to withholding tax deducted at source by the company paying them. The tax is generally a final tax — you keep the rest and owe nothing further on that dividend. The net dividend is:

Net dividend = Gross dividend × (1 − WHT rate)

The standard WHT rate is 10%. Where the recipient lives in a country with a double-tax treaty with Nigeria, the rate is reduced to 7.5%. Dividends already taxed at source become franked investment income and are not taxed again if redistributed.

Example

A gross dividend of ₦2,000,000 at the standard 10% rate suffers ₦200,000 of withholding tax, leaving a net dividend of ₦1,800,000. Under a treaty 7.5% rate, the WHT would be ₦150,000, leaving ₦1,850,000.

Tips

The 10% WHT is usually a final tax — don’t add the dividend to your other taxable income.
Claim the 7.5% treaty rate only if you qualify as a treaty-country resident with the right documentation.
Keep the withholding tax credit note from the company as proof the tax was deducted and remitted.