What VAT rate should a freelancer charge in Nigeria?

Nigeria Revenue Service (NRS) VAT is 7.5%. However, you must register for VAT before charging it. The VAT registration threshold in Nigeria is ₦ 25 million annual turnover. Most freelancers are below this — set tax to 0% unless registered.

Bank transfer or mobile money for Nigerian B2B invoices?

Bank transfer (NEFT/NIBSS) is the standard for B2B invoicing in Nigeria. Provide your bank name, account name, and 10-digit NUBAN account number. OPay and PalmPay are growing but mostly used for consumer transactions.

What is Withholding Tax (WHT) and how does it affect Nigerian invoices?

WHT in Nigeria is typically 5% on professional and consultancy fees (10% for non-residents). It is deducted at source by the client — they pay you the net amount and remit WHT to the NRS. You should note on your invoice: "Subject to 5% WHT deduction." You then use your WHT credit note to offset income tax.

Can I invoice in USD as a Nigerian freelancer?

Yes. Many Nigerian freelancers on Upwork, Fiverr, and Toptal invoice in USD. Change the currency to USD in the tool, set tax to 0% for export services, and provide your Wise or Payoneer account details.

🇳🇬 Nigeria · NRS VAT 7.5% · Bank Transfer

How to Invoice Clients in Nigeria

Invoicing in Nigeria has a few nuances that trip up freelancers and small business owners: Withholding Tax, the right payment method for B2B, and knowing when to charge VAT. This guide covers everything clearly.

What goes on a Nigeria invoice?

Your business name, contact, and address
Client name and address
Unique invoice number — e.g. NG-0001
Invoice date and due date
Itemised services with quantities and rates in ₦ (Naira)
VAT 7.5% — only if VAT-registered (threshold: ₦ 25 million/year)
Withholding Tax note — e.g. "Subject to 5% WHT deduction"
Bank account details — bank name, account name, 10-digit NUBAN number

NRS VAT — when to charge it

The Nigeria Revenue Service (NRS, formerly FIRS) VAT rate is 7.5% (raised from 5% in 2020). You are only required to charge VAT if your annual turnover exceeds ₦ 25 million. Most freelancers are below this.

If your client is a large company, they may ask for your VAT registration number (TIN) on the invoice. If you don't have one, note that you are not VAT-registered.

Withholding Tax (WHT) — what you need to know

WHT is one of the most confusing aspects of Nigerian invoicing for freelancers. Here's how it works:

Your client deducts 5% WHT from your payment (10% for non-resident companies)
They remit this to the NRS and issue you a WHT credit note
You use the credit note to offset your annual income tax liability
You should always invoice for the full amount (before WHT deduction)

Add a line to your Notes: "This invoice is subject to 5% Withholding Tax deduction as per Nigerian tax regulations."

Bank transfer vs. mobile money

For B2B invoicing in Nigeria, bank transfer (NEFT via NIBSS) is the standard. Include your:

Bank name — e.g. Zenith Bank, GTBank, Access Bank, UBA
Account name — must match exactly
Account number — 10-digit NUBAN format

OPay and PalmPay are increasingly used for consumer payments and small B2B transactions. For invoices to startups and tech companies, including your OPay number is acceptable.

Payment terms

Freelancers: Net 14–21 days, or 30–50% deposit upfront
B2B services: Net 30 days
Enterprise/government: Net 45–90 days (be prepared)

Nigeria has a culture of late payment — especially in corporate and government sectors. Always send a reminder at Net 25 days, and specify interest on late payment in your terms.

Create your Nigeria invoice →

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