The Nigerian Employer’s Compliance Checklist for 2026: PAYE, Pension, NHF, NSITF and the New Tax Act
This is the article you bookmark and come back to.
Not because it is the most dramatic piece in this series. It is not. But because the founders who keep it close are the ones who avoid the compliance surprises that quietly derail companies that are otherwise doing everything right.
Under Nigeria’s Tax Reform Acts, effective January 1, 2026, every employer in Nigeria is managing a statutory stack that has become more complex, more monitored, and more consequential than at any point in recent history. The NRS now uses real-time data analytics to cross-reference payroll, bank transactions, and tax filings. Non-compliance surfaces faster than it ever has. The penalties compound monthly. What follows is a complete practical reference guide for every statutory obligation your business carries as a Nigerian employer.
1. PAYE: Personal Income Tax
| Item | Detail |
| What it is | Tax deducted from employee salaries at source and remitted to the relevant State Internal Revenue Service |
| Who it applies to | All employers with staff based in Nigeria, regardless of company size |
| Filing frequency | Monthly: remittance due by the 10th of the following month |
| Which authority | State Internal Revenue Service (SIRS) for the state where the employee works, not where your company is registered |
| Multi-state note | Each state where you have employees requires separate registration and filing |
| New in 2026 | NRS real-time monitoring cross-references your payroll with employee bank records. Discrepancies are flagged automatically |
| Penalty – first month | ₦100,000 |
| Penalty – subsequent months | ₦50,000 per month, compounding |
Questions to ask your payroll provider
1. Are we registered with the SIRS in every state where we have employees?
2. Are PAYE remittances being processed by the 10th of each month?
3. Can you show our last three months of PAYE receipts per state?
2. Pension: Contributory Pension Scheme (CPS)
| Item | Detail |
| What it is | Mandatory retirement savings contributions deducted from employee salaries and matched by employer |
| Employer contribution | Minimum 10% of monthly emoluments |
| Employee contribution | Minimum 8% of monthly emoluments |
| Who it applies to | All employers with 3 or more employees |
| Filing frequency | Monthly: remittance must reach the PFA within 7 working days of salary payment |
| Which authority | Licensed Pension Fund Administrator (PFA) chosen by the employee |
| Penalty | 2% of the total contribution amount per month of late remittance, plus potential legal action |
| Common mistake | Deducting contributions from employee salaries but delaying remittance to the PFA |
Questions to ask your payroll provider
1. Are all employees enrolled with a licensed PFA?
2. Are contributions reaching the PFA within 7 working days of payroll?
3. Can you produce a pension remittance certificate for the last 3 months?
3. NHF: National Housing Fund
| Item | Detail |
| What it is | Mandatory contribution to the Federal Mortgage Bank of Nigeria to fund affordable housing |
| Contribution rate | 2.5% of basic salary, deducted from employee pay monthly |
| Who it applies to | All Nigerian employees earning ₦3,000 or more per month |
| Filing frequency | Monthly remittance to the Federal Mortgage Bank of Nigeria |
| Why it gets missed | Less publicized than PAYE and pension. Many startups learn about it only during a compliance audit |
| Consequence | Legal liability under the National Housing Fund Act |
Questions to ask your payroll provider
1. Are NHF deductions being made from all eligible employee salaries?
2. Are monthly remittances being processed to the FMBN?
3. Do we have NHF registration numbers for all enrolled employees?
4. NSITF: Nigeria Social Insurance Trust Fund
| Item | Detail |
| What it is | Social insurance providing employees with compensation for work-related injuries and disabilities |
| Contribution rate | 1% of total monthly payroll, paid entirely by the employer |
| Who it applies to | All employers in Nigeria |
| Filing frequency | Monthly remittance to the Nigeria Social Insurance Trust Fund |
| Common confusion | Frequently confused with pension contributions or overlooked entirely. It is a separate, employer-only obligation |
| Consequence | Financial penalties, potential prosecution, and disruption to employee compensation claims |
Questions to ask your payroll provider
1. Are we registered with NSITF?
2. Is 1% of total monthly payroll being remitted each month?
3. Can you show remittance receipts for the last quarter?
5. ITF: Industrial Training Fund Levy
| Item | Detail |
| What it is | Annual levy supporting industrial training and skills development in Nigeria |
| Contribution rate | 1% of total annual payroll |
| Who it applies to | Employers with 5 or more employees OR annual payroll exceeding ₦50,000 |
| Filing frequency | Annual: remitted to the Industrial Training Fund |
| Additional benefit | Companies that comply can claim reimbursement for ITF-approved training costs |
| Consequence | Financial penalties and loss of ITF compliance certification |
Questions to ask your payroll provider
1. Are we registered with the ITF?
2. Is our annual levy being calculated correctly and remitted on time?
3. Are we tracking training expenditure that could qualify for ITF reimbursement?
6. The 2026 Tax Reform Act: What Changed for Employers
| Change | What It Means for You |
| Real-time NRS monitoring | Payroll, bank transactions, and tax filings are now cross-referenced automatically. Discrepancies trigger audits without human review |
| TIN mandatory for financial activity | Employees without active TINs linked to their NIN face disruption to banking, insurance, and stock trading |
| E-invoicing requirements | Audit trails exist across commercial transactions. Payroll-related payments are increasingly visible to the NRS |
| Inter-agency data sharing | NRS now collaborates with FIRS, state revenue services, and financial institutions. A gap in one filing can surface across multiple agencies |
| Increased automated audits | AI-powered compliance detection identifies non-compliance faster than the previous manual audit system |
Your Monthly Compliance Rhythm
| When | What to Do |
| By the 10th of each month | Remit PAYE to the relevant SIRS for all states where you have employees |
| Within 7 working days of payroll | Remit pension contributions to each employee’s PFA |
| Monthly | Remit NHF deductions to the Federal Mortgage Bank of Nigeria |
| Monthly | Remit NSITF contributions (1% of total payroll) to the Fund |
| Annually | Calculate and remit ITF levy (1% of annual payroll) |
| Quarterly | Review compliance status across all states. Request certificates from PFA and NSITF |
| When hiring in a new state | Register with that state’s Internal Revenue Service before the first payroll cycle |
The Self-Audit: Where to Start This Week
Work through this checklist against your last three months of payroll records.
PAYE
– Active SIRS registration for every state where we have employees
– Monthly PAYE remittances processed by the 10th
– Remittance receipts on file for the last 3 months
Pension
– All employees enrolled with a licensed PFA
– Contributions reaching PFA within 7 working days of payroll
– Pension remittance certificate available for last 3 months
NHF
– NHF deductions being made for all eligible employees
– Monthly remittances being processed to FMBN
NSITF
– Active NSITF registration
– 1% of monthly payroll being remitted
ITF
– Active ITF registration
– Annual levy calculated and remitted
If you answered No or Unsure to three or more items, your compliance stack has gaps accumulating liability. Voluntary disclosure before an NRS audit results in significantly reduced penalties. The window for proactive correction is always cheaper than reactive remediation.
How Revent Technologies Helps
Revent Technologies manages the complete compliance stack for growing Nigerian companies: PAYE across all states, pension remittances, NHF, NSITF, and ITF, so your HR team focuses on culture and growth, not statutory filings. Their Employer of Record model places professionals in 1 to 14 days with all compliance handled from day one. Their clients include Tier 1 and Tier 2 Nigerian banks, pan-African financial institutions, and multinational corporations operating across Nigeria. Staff placed through Revent have stayed with clients for 3+ years, more than double the industry average.
| Ready to clean up your compliance stack and scale without the liability? Talk to Revent Technologies |
Research Sources
– Nigeria Revenue Service: Nigeria Tax Administration Act 2025, effective January 1, 2026
– PwC Nigeria: The Nigerian Tax Reform Acts: Employer Obligations
– National Pension Commission (PenCom): Contributory Pension Scheme employer guide
– Federal Mortgage Bank of Nigeria: NHF contribution and remittance requirements
– Nigeria Social Insurance Trust Fund (NSITF) — Employer registration and contribution guidelines
– Industrial Training Fund (ITF) — Levy requirements, certification and reimbursement
– Remote Solutions Africa — Nigeria’s 2026 Tax Reform: New Rates, Penalties and Compliance Guide
| Build a post-funding hiring strategy that protects your runway. Talk to Revent Technologies |