Back to Learning Hub
BeginnerSTARTER

Tax Relief and Allowances in Nigeria: How to Legally Reduce Your Tax Bill

Nigerian taxpayers can significantly reduce their tax liability through various reliefs and allowances, but many pay more than necessary due to lack of awareness. This comprehensive guide explains all available tax reliefs including Consolidated Relief Allowance (CRA), pension deductions, life insurance premiums, and how to claim them properly to maximize your take-home income.

TaxEase Nigeria Team
05/01/2026
25 min read
tax relieftax allowancesCRAconsolidated relief allowancepension taxlife insurance taxPAYEtax deductionspersonal income taxself-employed taxtax savingsNigerian tax

Introduction

Adebayo stared at his payslip in frustration. Month after month, he watched a substantial chunk of his ₦350,000 monthly salary disappear to PAYE tax. What he didn't know was that he was entitled to tax reliefs that could reduce his annual tax bill by over ₦200,000. Unfortunately, Adebayo's situation isn't unique—thousands of Nigerian taxpayers overpay because they're unaware of legitimate tax reliefs available to them.

The good news? Nigerian tax law provides several reliefs and allowances designed to reduce your taxable income. Whether you're a salary earner, self-employed professional, or business owner, understanding these reliefs is crucial to keeping more of your hard-earned money while staying fully compliant with FIRS regulations.

Continue Reading

Sign up for free to read the full article and access our entire learning hub

✨ What you get with a free account:

Full Learning Hub Access

Read all STARTER tier articles

All Tax Calculators

PAYE, CIT, VAT, CGT with AI insights

10 Free AI Messages

Get tax advice from our AI assistant

Save Calculations

Track your tax history over time

🔒 No credit card required • Free forever • Cancel anytime

Tax Relief and Allowances in Nigeria: How to Legally Reduce Your Tax Bill | TaxEase Nigeria