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The accounting and financial solution designed for Nigeria

Manage your IFRS accounting, your FIRS filings and prepare for e-invoicing from a single platform. Built for Nigerian SMEs, Lagos fintechs and pan-African groups that need to manage Naira risk on a daily basis.

~220M

Population

#1

Largest African Economy

7,5%

Standard VAT Rate

#1

West Africa Fintech Hub

Currency: Naira VAT: 7.5% Standard: IFRS / IFRS for SMEs

Regulations

IFRS and IFRS for SMEs

Nigeria applies full IFRS for public interest entities (companies listed on the Nigerian Exchange, banks, insurers, pension funds) since 2012, and IFRS for SMEs for other entities. The Financial Reporting Council of Nigeria (FRCN) oversees compliance. Mandatory financial statements compliant with IAS 1: Statement of Financial Position, Statement of Comprehensive Income, Statement of Cash Flows and Statement of Changes in Equity.

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FIRS e-invoicing

E-invoicing system of the Federal Inland Revenue Service (FIRS), launched in production in August 2025 for large taxpayers (turnover above 5 billion NGN). Progressive extension to medium and small taxpayers planned for 2026. Invoices must be transmitted via TaxPro-Max or direct API integration, with real-time validation by FIRS and generation of a unique Invoice Reference Number (IRN).

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Companies Income Tax Act (CITA) and VAT Act

Nigerian tax framework governing corporate income tax (30% for large companies, 20% for medium companies with turnover between 25M and 100M NGN, exemption for small companies with turnover below 25M NGN), VAT (7.5% since 2020), Education Tax (3%) and Police Trust Fund Levy (0.005%). Updated annually through the Finance Act.

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PFA Pension Reform Act and NSITF

Mandatory contributory pension scheme: 8% of gross salary on the employee side and 10% on the employer side (minimum), paid to a Pension Fund Administrator (PFA) licensed by PenCom. NSITF (Nigeria Social Insurance Trust Fund) imposes a 1% employer contribution for workplace accident coverage. Industrial Training Fund (ITF) at 1% for companies with payroll above 5M NGN.

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E-invoicing

FIRS e-invoicing (TaxPro-Max)

The Federal Inland Revenue Service rolled its e-invoicing system into full production in August 2025, starting with large taxpayers (turnover above 5 billion NGN). The deployment will progressively extend to medium and small taxpayers over 2026. The model is clearance-based: every invoice must be validated by FIRS in real time via the TaxPro-Max platform or through direct API integration, and receives a unique Invoice Reference Number (IRN) before issuance to the customer. This reform aims to broaden the VAT base and combat tax fraud in Africa's largest economy.

Tax Specifics

Nigerian tax regime

The Nigerian tax system is governed by the Companies Income Tax Act (CITA), the VAT Act, the Personal Income Tax Act (PITA) and the Finance Act (updated annually). Tax administration is handled by the Federal Inland Revenue Service (FIRS) at the federal level and by the State Internal Revenue Services at the state level. TaxPro-Max is the unified portal for filings and payments.

Main taxes and duties

Filing obligations

Accounting specifics and Naira risk

Frequently Asked Questions

What accounting standard is mandatory in Nigeria?

Nigeria adopted full IFRS in 2012 for companies listed on the Nigerian Exchange (NGX), banks, insurers, pension funds and other public interest entities. Non-listed SMEs apply IFRS for SMEs. The Financial Reporting Council of Nigeria (FRCN) oversees compliance. CassKai natively supports both frameworks and automatically generates compliant financial statements: Statement of Financial Position, Statement of Comprehensive Income (P&L + OCI), Statement of Cash Flows and Statement of Changes in Equity.

What is FIRS e-invoicing and is CassKai compatible?

The FIRS e-invoicing is the e-invoicing system of the Federal Inland Revenue Service, launched in production in August 2025. It is mandatory for large taxpayers (turnover above 5 billion NGN) and will be progressively extended to medium and small taxpayers in 2026. The model is clearance-based: every invoice must be validated by FIRS in real time via TaxPro-Max and receives a unique Invoice Reference Number (IRN) before issuance. CassKai integrates directly with the FIRS API, automatically generates the IRN and fiscal QR code, and transmits invoices with no manual intervention.

What are the CIT thresholds and how does VAT work in Nigeria?

Nigeria applies Companies Income Tax (CIT) on three brackets: 30% for large companies (turnover > 100M NGN), 20% for medium (turnover between 25M and 100M NGN) and 0% for small companies (turnover < 25M NGN). VAT is at 7.5% since 2020. VAT returns are monthly on TaxPro-Max before the 21st of the following month. CassKai automatically determines the applicable CIT bracket, computes collected and deductible VAT and synchronises returns with TaxPro-Max.

How does CassKai handle Naira volatility and multi-currency?

Naira volatility is a major issue for Nigerian businesses: the 2023-2024 devaluation triggered large spreads between official CBN rates and parallel rates, with a direct impact on importers, fintechs and exporters. CassKai offers robust multi-currency management: NGN/USD/EUR/GBP, real-time tracking of CBN rates, booking of FX gains and losses (IAS 21), revaluation of foreign currency positions and consolidated reporting in NGN or an alternative functional currency. Essential for Lagos fintechs that often invoice in USD while paying expenses in NGN.

How does CassKai handle Nigerian PAYE and pension contributions?

CassKai supports PAYE (progressive scale from 7% to 24%, withheld at source and remitted to the State Internal Revenue Service), pension contributions (8% employee + 10% employer minimum, paid to a PFA licensed by PenCom), NSITF (1% employer), ITF (1% for companies with payroll above 5M NGN) and the Employee Compensation Scheme. Automatic generation of payslips, contribution calculations and preparation of returns to be filed via State Internal Revenue Service portals.

Is CassKai suitable for Lagos fintechs and startups?

Yes, CassKai is particularly suited to the Lagos fintech and tech ecosystem, Africa's leading hub: robust multi-currency (NGN/USD/EUR), wallet management, integration with local payment gateways, MRR/ARR tracking for SaaS businesses, IFRS-compliant accounting matching international investor requirements, cross-Africa consolidation (NGN/XOF/USD), and FIRS e-invoicing readiness for fast-growing taxpayers crossing the 5 billion NGN threshold. Ideal for startups raising in USD and operating in NGN.

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Essential modules for this market

Key features tailored to the local context

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Why pick us over the alternatives

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Other countries covered

Discover our accounting solutions in the region

Ghana IFRS / IFRS for SMEs · Ghanaian Cedi Kenya IFRS / IFRS for SMEs · Kenyan Shilling Ivory Coast SYSCOHADA · Franc CFA (XOF) Benin SYSCOHADA · Franc CFA (BCEAO)

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