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Full CIT and development levy computation for a Nigerian manufacturer

The capstone project for Company Income Tax & Corporate Compliance (Nigeria 2026) — a free Finance course. Pass it and you earn a certificate anyone can verify.

Start the course free Download the project workbook

The project unlocks once you complete the lessons. The workbook is free to download now so you can see exactly what is expected.

What you will submit

A shared Google Sheet or Doc link containing: (1) an adjusted profit computation with reasoned add-back decisions reaching assessable profit; (2) an asset-by-asset capital allowance schedule with written down values; (3) the development levy and companies income tax computed on their correct and clearly labelled bases; (4) the balance payable after WHT credits, with the due date, portal and required documents; (5) a chargeable gain computation with a comparison to the pre-2026 position; and (6) a compliance calendar and audit-file list.

What to do, step by step

  1. Use this company: 'Harmattan Mills Ltd', a Nigerian food manufacturer with a 31 December year-end. Turnover for the year is ₦640,000,000 and fixed assets at cost are ₦310,000,000. The audited accounts show a profit before tax of ₦68,000,000, after charging: depreciation ₦24,000,000; a general provision for doubtful debts ₦4,000,000; a specific provision against an identified bad debt from a named customer ₦2,500,000; fines from a regulatory agency ₦1,200,000; a donation of ₦800,000 to a body that is NOT on the approved list; the managing director's family travel of ₦1,800,000 charged to the company; and legal fees of ₦3,000,000 relating wholly to a trading dispute.
  2. PART 1 — The adjusted profit computation. Starting from profit before tax, prepare the schedule of add-backs, taking care to decide correctly which of the seven items above are added back and which are allowable (state your reasoning in one line each). Arrive at the ASSESSABLE PROFIT.
  3. PART 2 — Capital allowances. During the year the company brought into use: a packaging line costing ₦45,000,000, two delivery trucks costing ₦16,000,000 in total, and office furniture costing ₦6,000,000. Using an initial allowance of 50% and an annual allowance of 25% for the packaging line and the trucks, and an initial allowance of 25% and an annual allowance of 20% for the furniture, compute the capital allowance claim for each asset and the total, and show the tax written down value carried forward for each. State clearly in one sentence that these rates are illustrative and where a preparer would confirm the current statutory rates.
  4. PART 3 — The two charges. Compute (a) the DEVELOPMENT LEVY at 4%, being careful to apply it to the correct base, and (b) COMPANIES INCOME TAX at 30% on taxable profit after deducting your capital allowances. Show both bases explicitly and add a one-sentence note explaining why the two charges sit on different figures.
  5. PART 4 — The balance payable. The company holds withholding tax credit notes totalling ₦3,600,000 from customers who deducted at source during the year. Compute the total liability and the balance actually payable, and state the exact date the return and payment are due, the portal it is filed on, and the three documents that must accompany the return.
  6. PART 5 — A disposal. In the same year Harmattan Mills sold a warehouse for ₦260,000,000 that it had acquired for ₦95,000,000, incurring ₦6,000,000 of professional fees on the sale. Compute the chargeable gain and the tax on it at the current rate, and write two or three sentences explaining how this outcome would have differed under the pre-2026 rules and why that matters to anyone advising on disposals.
  7. PART 6 — The compliance calendar and audit file. Build a table of every federal tax obligation Harmattan Mills has for the year — the obligation, the authority, the frequency and the exact due date — and then list the documents you would place in an audit file to support this year's return, explaining in one or two sentences why the burden of proof makes that file the company's main defence.
  8. Put everything in one shared Google Sheet or Google Doc, set link sharing to 'anyone with the link can view', and submit the link.

Files to work with

Project workbook (fill in, then submit)The whole brief, an evidence checklist, the grading rubric as a self-check and the link-sharing steps in one file. Opens in Word, Google Docs or WPS.Word · 8 KB

How it is graded

CriterionWeight
The add-back decisions are correct and reasoned — depreciation, the GENERAL provision, fines, the non-approved donation and the director's family travel added back, while the SPECIFIC bad-debt provision and the trading-dispute legal fees are correctly left as allowable22%
Capital allowances are computed correctly asset by asset — initial and annual allowances applied to the right bases, totals correct, written down values carried forward, and the illustrative nature of the rates acknowledged18%
The development levy is applied to ASSESSABLE profit and companies income tax to TAXABLE profit after capital allowances, with both bases explicitly labelled and the difference explained — this is the single most commonly failed point22%
The balance payable correctly deducts the WHT credits, and the due date (30 June), the portal (Rev360 at selfservice.nrs.gov.ng) and the three accompanying documents are all stated accurately13%
The chargeable gain is computed correctly net of acquisition cost and professional fees and taxed at the current 30% rate, with an accurate explanation of how the pre-2026 10% rate would have differed15%
The compliance calendar is complete and accurate, the audit file is well chosen, and the whole pack is organised, labelled and presented to a standard a reviewer could sign off10%

You need 65% overall to pass. A failed submission comes back with feedback and can be revised and resubmitted.

Before you submit: make your link public

If your work lives in Google Drive or Google Docs, open Share → General access and change “Restricted” to “Anyone with the link” (Viewer). Then paste the link into a private browser window: if it opens without sign-in, you are ready. A private link cannot be graded — it is the single most common reason a good project fails.

Frequently asked questions

Do I have to finish Company Income Tax & Corporate Compliance (Nigeria 2026) before submitting the project?

Yes. The submission screen opens once every lesson in Company Income Tax & Corporate Compliance (Nigeria 2026) is marked complete. The lessons are where the methods, the Nigerian context and the worked examples the project depends on are taught.

How is the project graded?

An examiner scores each rubric criterion from 0 to 100 and weights them as shown on this page; you need 65% overall to pass. Most submissions are graded within minutes and you get written feedback on what was strong and what to improve.

Can I resubmit if I fail?

Yes. A failed project comes back with feedback; revise the weak parts and resubmit. A passed project is final — the certificate is issued and cannot be re-rolled.

What do I actually submit?

A write-up of what you did (under 5,000 characters) plus a public link to your work — a Google Drive folder, Google Doc, spreadsheet, GitHub repository or video. The link must open without sign-in; a private link cannot be graded. The free project workbook on this page walks you through all 8 steps.

Is the certificate real?

Yes. Passing this project issues a certificate with a unique verification code. Anyone — an employer, a client, a school — can open the verification page and see that the certificate is genuine and which project earned it.

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Company Income Tax & Corporate Compliance (Nigeria 2026) is free and self-paced. Finish the lessons, complete this project, and the certificate is yours to share.

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