Quick overview
| Standard Rate | Reduced Rate | Other Rates |
| 7.5% | N/A | Zero-rated (0%) and exempt |
The local name for VAT in Nigeria is Value-added tax (VAT).
There is basically 1 VAT rate in Nigeria:
- Standard VAT rate is 7.5%
Recent developments
For more information about (recent) rate change developments in Nigeria, please click HERE.
Standard rate: 7.5%
This rate applies for all transactions that take place in Nigeria, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).
Zero rate (0%)
Examples of goods and services taxable at 0%, with the right to deduct VAT
- Goods and services purchased by diplomats
- Goods and services purchased for humanitarian donor-funded projects
Examples of exempt supplies of goods and services, without the right to deduct VAT
- All exported goods and services
- Medical goods and services and pharmaceutical products
- Basic food items
- Locally produced sanitary napkins
- Books and educational materials
- Petroleum products, renewable energy equipment, gas supplied to electricity generating companies (GENCOs) and electricity distribution companies (DISCOs)
- Airline transportation tickets, shared passenger road transport services 1364 Nigeria
- Commercial aircraft, aircraft engines and spare parts
- Plant, machinery and goods imported for use in free-trade zones
- Plant, machinery and equipment purchased for the utilization of gas in downstream petroleum operations
- Tractors, plows and agricultural implements purchased for agricultural purposes
- Services rendered by unit micro-finance banks and mortgage institutions
- Plays and performances by educational institutions as part of learning
- Proceeds from the disposal of short-term federal government of Nigeria securities and bonds
- Proceeds from the disposal of short-term state, local government and corporate bonds; this xemption will only last 10 years from a commencement date of 2 January 2012
A global VAT/GST rate overview can be found here (note this is a work in progress).
This post was last updated on February 2, 2024
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