The Development Levy is a new 4% levy on taxable profits that consolidates and replaces several existing levies, including the Tertiary Education Tax (TET), IT Levy, and others. This simplifies compliance significantly. The levy is designed to phase down over time:
- 2025-2026: 4%
- 2027-2029: 3%
- 2030 onwards: 2%
- Scenario: A company with a taxable profit of ₦500 million will pay a Development Levy of ₦20 million in 2025.
