In the vibrant, yet complex, Nigerian business environment, compliance is not just a legal requirement; it is the bedrock of sustainability and access to critical opportunities, like government contracts and funding. Every registered business owner knows that missing a deadline can result in hefty penalties, interest charges, and the dreaded “inactive” status from the Corporate Affairs Commission (CAC).
To thrive, you must run your business like a clock, where every statutory obligation is met on time. Here is a definitive, calendar-focused guide to the non-negotiable compliance deadlines every registered Nigerian enterprise must track.
5 Critical Compliance Deadlines to Mark in Your Calendar
These five obligations, overseen by major regulatory bodies like the CAC, FIRS, and various labour funds, represent the bare minimum a registered Nigerian business must adhere to for good standing.
Corporate Affairs Commission (CAC) Annual Returns
The CAC Annual Returns provide the government with a snapshot of your company’s structure and financial health. The due date is highly specific: your first return is due 18 months after incorporation, and subsequent returns must be filed annually thereafter.
Filing should be done within 42 days after your Annual General Meeting (AGM), but typically no later than June 30th of the following year for existing companies. Failure to file attracts statutory penalties that accrue yearly, threatening your company’s active status and limiting your ability to transact legally.
Monthly Value Added Tax (VAT) and Withholding Tax (WHT) Remittance
VAT and WHT are critical monthly tax obligations managed by the Federal Inland Revenue Service (FIRS). The deadline for both the filing and payment of VAT (currently 7.5%) and the remittance of any WHT deducted (rates vary from 2% to 10%) is the 21st day of the month following the transaction. For example, tax liabilities arising in October must be remitted by November 21st. The FIRS imposes stiff penalties for late remittances, often including interest and substantial default charges that quickly erode your profit margins.
Monthly Pay-As-You-Earn (PAYE) Tax Remittance
While federal taxes go to the FIRS, Personal Income Tax (PAYE) deducted from your employees’ salaries is remitted to the relevant State Internal Revenue Service (SIRS), such as LIRS in Lagos. This deduction must be remitted by the 10th day of the month following the month in which the salary was paid. Furthermore, all employers must submit their annual PAYE returns by January 31st of the following year, which consolidates the previous year’s employee tax details. Strict adherence to these deadlines prevents audits and penalties from the state tax authorities.
Companies’ Income Tax (CIT) Filing
The Companies Income Tax (CIT) is your annual corporate tax obligation to the FIRS. For new companies, the first return is due within 18 months of incorporation or six months after the end of your first accounting period—whichever is earlier. For established businesses, the annual return, along with audited financial statements, must be filed within six months after the end of the company’s financial year. For most companies with a December 31st year-end, the deadline is June 30th of the following year. This deadline is often simultaneous with the Education Tax (currently 2.5%) filing.
Statutory Labour Contributions (PENCOM, ITF, NSITF)
Employers must remit contributions for their employees to several mandated social funds:
Pension (PENCOM): Employee and employer contributions must be remitted to the Pension Fund Administrator (PFA) within seven working days after salary payment.
Industrial Training Fund (ITF): Companies with five or more employees (or turnover above ₦50M) must contribute 1% of their annual payroll by April 1st of the following year.
Nigeria Social Insurance Trust Fund (NSITF): The 1% employer contribution under the Employees’ Compensation Scheme (ECS) is typically remitted monthly with your payroll.
These deadlines are crucial for obtaining mandatory Compliance Certificates, which are prerequisites for bidding on lucrative government and major private sector contracts.
Wish to know more about corporate compliance in Nigeria and how your business can take advantage of the opportunities in the Nigerian business sector in line with government regulations? Book a consultation with us today to get started.