“
The 2026 tax landscape has brought significant changes to how businesses manage Withholding Tax (WHT). Under the Nigeria Tax Act 2025, the government has streamlined rates to reduce the tax burden on key sectors like construction while tightening rules on passive income. Understanding these rates is crucial for accurate invoicing and cash flow management.
Key 2026 WHT Rates
- Construction (Roads, Bridges, Power Plants): Reduced to 2%.
- Consultancy & Professional Services: Remains at 10% for companies and 5% for individuals.
- Interest on Short-Term Securities: Now 10% (applies to Treasury Bills and Commercial Papers).
- Dividends and Rent: 10%.
- Director’s Fees: Increased to 20% to encourage formal salary structures.
Important: If a vendor does not have a valid TIN, the WHT rate is automatically doubled. For more on company categories, see The Ultimate Guide to CIT.
Exemptions for Small Businesses
Small businesses with an annual turnover below ₦50 million are now largely exempt from the obligation to deduct WHT at source, provided the transaction is under ₦2 million. Check our SME Tax Guide for full details. For official rates, visit the Nigeria Revenue Service (NRS) or consult the PwC Nigeria Tax Summary.”