How the 0% company income tax rate for small companies works under the Nigeria Tax Act 2025 — the tax context in which an SME plans an AI investment.

dgm is an independent integration partner for osFoundry — it is not affiliated with the maker of osFoundry (OS LLC) and has not yet completed any integration project for a client.

Under the Nigeria Tax Act 2025, a small company — reported as gross turnover of ₦100 million or less and fixed assets not exceeding ₦250 million — pays 0% company income tax. Professional-service firms are reported not to qualify for the small-company rate regardless of turnover. This relief lowers the tax a small company pays on its own profit; it is not a subsidy to buy AI software.

What public support actually funds

Government support in Nigeria funds a company’s own investment, research and development, exports or staff training, or grants a tax break — it does not buy an off-the-shelf AI subscription. The long-standing Pioneer Status Incentive closed to new applicants on 10 November 2025 and has been replaced, from 1 January 2026, by the Economic Development Tax Incentive (EDTI): a tax credit on qualifying capital expenditure rather than a tax holiday. The Nigeria Startup Act 2022 channels tax reliefs and investor incentives to companies that hold NITDA’s Startup Label. There is a statutory research-and-development deduction under the Nigeria Tax Act 2025 (reported as capped at 5% of turnover) for a company’s own R&D. The Bank of Industry lends to businesses; the Nigerian Export Promotion Council’s Export Expansion Grant rewards physical and processed exports; the 3MTT programme trains people; and the TETFund National Research Fund supports academic researchers at public institutions. dgm is not an accredited, registered or approved provider under any of these programmes; it can advise a beneficiary or act as a subcontractor.

How it connects to an AI project

A well-built AI project starts from a concrete use case, not from a grant. Incentives and tax reliefs can improve the business case, but they do not replace it: first choose the problem you are solving with osFoundry, then check what support fits your project and whether you are eligible.

Worth remembering

This article is general information and not legal, financial or tax advice. Incentives, tax rates and regulations change; always confirm the current position with an official source — the NDPC, NITDA, the Federal Inland Revenue Service (becoming the Nigeria Revenue Service), the Central Bank of Nigeria, the Securities and Exchange Commission, NAICOM, the Nigerian Investment Promotion Commission or the relevant authority — or a qualified adviser before acting.

Where dgm fits in

dgm is an independent integration partner that helps organisations in Nigeria adopt the osFoundry platform — from identifying the first practical use case, to configuration, to connecting AI to the systems you already run. dgm works separately from the maker of osFoundry (OS LLC) and has not yet completed an integration project for any client, so everything described above is a proposed service, not a delivered result. If you would like to weigh a practical first step, dgm is glad to look at it with you. Book an introductory call with dgm.