“
One of the biggest headaches for SMEs in Nigeria is the ‘Area Boy’ tax—illegal levies collected by unauthorized persons. In 2026, the Taxes and Levies (Approved List for Collection) Act has been strictly enforced to protect businesses. If it’s not on the official list, you shouldn’t be paying it.
Approved LG Levies
- Shops and Kiosks Rates: For physical retail locations.
- Tenement Rates: Often collected by the LG (or state, depending on the region).
- Liquor Licenses: For businesses selling alcohol.
- Signage & Advertisement: Fees for displaying your brand name outside your office.
Always demand an official e-receipt. For a guide on how to handle state-level payments, see State Tax Authorities. For a full list of legal levies, visit the Joint Tax Board or refer to PwC Nigeria’s tax summaries.
“