What is the minimum wage in Nigeria in 2026?

Nigeria's national minimum wage is ₦70,000 per month as of 2026, under the National Minimum Wage (Amendment) Act 2024. Lagos State pays ₦85,000 and Imo State pays ₦104,000. Federal and large private employers are legally required to pay at least ₦70,000.

How much does CAC business registration cost in Nigeria 2026?

Business Name registration costs approximately ₦10,000–₦25,000. Private Limited Company (Ltd) registration costs ₦30,000–₦100,000+ depending on share capital and whether you use an agent. TIN registration is free via the FIRS TaxPro Max portal.

What is the pension contribution rate for employers in Nigeria?

Under the Pension Reform Act, employers must contribute a minimum of 10% of each employee's monthly emolument, while employees contribute 8%. This applies to companies with 15 or more employees. Contributions must be remitted within 7 days of salary payment.

What is NSITF and how much does an employer pay?

NSITF (Nigeria Social Insurance Trust Fund) provides insurance for employees against workplace injuries. Employers must contribute 1% of total monthly payroll. This applies to all employers with at least one employee. The deadline is the last day of each payroll month. Late payment attracts 5% monthly penalty.

What VAT rate applies to Nigerian businesses in 2026?

Nigeria's VAT rate is 7.5%. VAT registration is mandatory for businesses with annual turnover above ₦25 million. Small companies with annual turnover of ₦100 million or less and total assets of ₦250 million or less are exempt from charging VAT on goods and services.

How much does office space cost in Lagos per month?

Grade A Lagos office space costs ₦80,000–₦150,000 per square metre annually. Coworking spaces are available from approximately ₦90,000–₦375,000 per month equivalent ($60–$250). Many startups use a 'Mainland base, Island presence' strategy to manage costs.

What is the ITF levy for Nigerian employers?

The Industrial Training Fund (ITF) levy is 1% of annual payroll. This applies to companies with five or more employees OR annual turnover above ₦50 million. It funds vocational and industrial training in Nigeria.

How do I calculate employee cost of a Nigerian business?

Total employee cost = Basic Salary + Employer Pension (10% of salary) + NSITF (1% of salary) + NHIA/NHIS health insurance + ITF (1% of annual payroll if applicable) + any other allowances. For example, a ₦150,000/month employee costs the employer approximately ₦167,500+/month after statutory employer contributions.

What is the corporate income tax rate in Nigeria?

Nigeria's Company Income Tax (CIT) rate is 30% for large companies (turnover above ₦100 million). Small companies with turnover up to ₦25 million pay 0% CIT. Medium companies between ₦25 million and ₦100 million pay 20%. This tiered structure was introduced to support small businesses.

What are the average monthly operating costs for a small business in Nigeria?

A typical small Nigerian business with 3–5 staff can expect monthly operating costs of ₦500,000–₦2,000,000+ depending on location, sector, and size. Key cost drivers include staff salaries (including statutory deductions), rent (especially in Lagos), energy/generator fuel, and internet. Using this calculator gives a more precise figure based on your specific inputs.

Home› SME Resources› Business Cost Calculator

📈 Free Tool | Updated June 2026

Nigerian Business Cost Calculator 2026

Calculate your real monthly operating costs, staff wages with all statutory deductions, one-time startup expenses, and compliance obligations — all built on verified 2026 Nigerian data. Know your true numbers before you spend a kobo.

✍️ Samson Ese, Daily Reality NG 📅 Data: June 2026 🏭 Covers: All Business Types

✅ All figures verified from official 2026 Nigerian sources — minimum wage, PENCOM, NSITF, ITF, VAT, CAC fees

📋 How to use this calculator: Work through all four sections using the tabs below. Enter your actual or planned figures. Click Calculate My Costs to see a complete breakdown of your monthly operating costs, staff costs including employer statutory contributions, startup registration costs, and a business viability assessment. All statutory rates are current as of June 2026.

🏛️ Business Profile

Business Type

Affects CAC registration cost and tax structure

Business Sector

Primary Location

Location significantly affects rent and staff salary expectations

Business Stage

Expected Monthly Revenue (₦)

₦

Enter your expected or current monthly turnover. Used to assess viability and tax threshold.

Office / Workspace Type

Monthly Rent / Workspace Cost (₦)

₦

Nigerian rent is usually paid annually — divide your annual rent by 12 for the monthly figure.

👥 Number of Staff

Total Employees (including yourself if paid)

3 employees

0102550

🏭 Statutory Employer Contributions (2026 Rates)

Employer Pension (10% of gross salary per employee) Mandatory for companies with 15+ employees | PenCom 2026

NSITF (1% of total monthly payroll) All employers with 1+ employee | Workplace injury insurance

NHIA / Health Insurance (approx. 5% employer contribution) National Health Insurance Authority — employer share estimate

ITF Levy (1% annual payroll ÷ 12 monthly) Mandatory for 5+ employees or ₦50M+ turnover | Industrial Training Fund

⚡ Energy Costs

Monthly EKEDC / DISCOS Electricity Bill (₦)

₦

Average small office: ₦20,000–₦50,000/month

Monthly Generator Fuel Cost (₦)

₦

PMS at ₦488–₦600/litre as of May 2026 (Numbeo/NBS)

Generator Maintenance & Service Monthly (₦)

₦

🌐 Internet & Communication

Monthly Internet / Data Cost (₦)

₦

Fibre broadband: ₦20,000–₦80,000. 4G backup: ₦10,000–₦30,000

Phone Bills / Airtime (₦)

₦

📦 Other Operating Costs

Marketing & Advertising (₦)

₦

Social media ads, print, WhatsApp marketing

Raw Materials / Inventory (₦)

₦

Transport & Logistics (₦)

₦

Software / SaaS / Tools (₦)

₦

Accounting software, POS, CRM, etc.

Bank Charges & POS Fees (₦)

₦

Other Monthly Expenses (₦)

₦

📋 One-Time Startup / Registration Costs

These are costs you pay once to set up your business. Include them to see your total launch investment.

CAC Business Name Registration (₦10,000–₦25,000) Solo proprietorship / Business Name | Faster and cheaper

CAC Private Limited Company (₦30,000–₦100,000+) Recommended for investment or multiple shareholders

Estimated Total CAC Registration Cost (₦)

₦

Pre-filled based on selection. Adjust if using an agent who charges extra.

Office Setup / Furniture / Equipment (₦)

₦

Initial Stock / Raw Materials Purchase (₦)

₦

Website / Branding / Logo (₦)

₦

NAFDAC / Permits / Licences (₦)

₦

NAFDAC, LASEMA, state permits as applicable

Other One-Time Startup Costs (₦)

₦

📊 Emergency / Reserve Fund

Target Emergency Fund (months of operating costs)

Nigerian SME experts recommend 3–6 months of operating costs as a reserve, given infrastructure volatility.

📊 Your Business Cost Breakdown

⚠️ Your Statutory Compliance Obligations (2026)

📈 Business Viability Assessment

📋 2026 Statutory Rate Reference — Nigeria

All rates used in this calculator are sourced from official Nigerian regulatory bodies. Bookmark this table for quick reference when preparing your business budget or verifying payroll calculations.

Statutory Obligation	Rate	Who It Applies To	Deadline	Authority
National Minimum Wage	₦70,000/month	All employers — full-time employees	Monthly with salary	FMoL (NMW Act 2024)
Minimum Wage — Lagos State	₦85,000/month	Employers in Lagos State	Monthly with salary	Lagos State Govt 2024
Minimum Wage — Imo State	₦104,000/month	Employers in Imo State	Monthly with salary	Imo State Govt 2024
Employer Pension Contribution	10% of gross emolument	Companies with 15+ employees	Within 7 days of salary payment	PenCom / PRA 2014
Employee Pension Contribution	8% of gross emolument	All employees in registered scheme	Deducted at source	PenCom / PRA 2014
NSITF Levy	1% of total monthly payroll	All employers (1+ employee)	Last day of payroll month	NSITF / ECA 2010
ITF Levy	1% of annual gross payroll	5+ employees OR ₦50M+ turnover	Annual filing	ITF Act
VAT (Value Added Tax)	7.5% on taxable supplies	Turnover above ₦25M/year (mandatory); voluntary below	Monthly filing by 21st	FIRS / VATA 1993 (amended)
Company Income Tax (Small)	0% CIT	Turnover ≤ ₦25 million	Annual return	FIRS / CITA
Company Income Tax (Medium)	20% CIT	Turnover ₦25M–₦100M	Annual return, 6 months after year end	FIRS / CITA
Company Income Tax (Large)	30% CIT	Turnover above ₦100M	Annual return, 6 months after year end	FIRS / CITA
PAYE Income Tax	Progressive: 7%–24%	All employees — employer deducts at source	Monthly by 10th	State IRS / PITA
CAC Business Name	₦10,000–₦25,000	Sole proprietors / partnerships	One-time at registration	CAC / CAMA 2020
CAC Private Limited Company	₦30,000–₦100,000+	Companies incorporating as Ltd	One-time at registration	CAC / CAMA 2020
TIN Registration	Free	All businesses (mandatory before banking)	One-time at startup	FIRS (TaxPro Max)
📎 Sources: National Minimum Wage (Amendment) Act 2024 \| PenCom Contributory Pension Scheme \| NSITF Employees' Compensation Act 2010 \| ITF Act \| FIRS VAT Act \| CITA \| CAMA 2020. Data current as of June 2026. Rates may be revised — verify at official agency websites before final payroll processing.

📚 Related Resources on Daily Reality NG

Samson Ese — Founder, Daily Reality NG

Every statutory rate in this calculator was verified from official Nigerian regulatory sources before building this tool. The calculator reflects real 2026 rates: NMW ₦70,000, pension 10% employer, NSITF 1%, ITF 1%, VAT 7.5%, and current CAC fees. If you notice any figure that needs updating, email me: dailyrealityng@gmail.com

Disclosure & Methodology: All statutory rates in this calculator are verified from official Nigerian regulatory sources as of June 2026: National Minimum Wage (Amendment) Act 2024, PenCom Contributory Pension Scheme rules, NSITF Employees' Compensation Act 2010, ITF Act, FIRS VAT and CIT guidelines, and CAMA 2020 CAC fee schedule. Cost benchmarks (office rent, coworking, generator fuel) are sourced from verified 2025–2026 Nigerian business publications. This calculator provides estimates only — consult a qualified Nigerian accountant or tax advisor for formal financial planning. Full disclosure →

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