Can Nigerian Freelancers Deduct Family Support Payments From Their Tax?

Many Nigerians support parents, siblings and relatives with school fees, medical bills and monthly household expenses. This is often called “Black tax”, but ordinary family support payments generally cannot be deducted from taxable business income. Under the Nigeria Tax Act 2025, deductible expenses must be wholly and exclusively incurred to earn income from a trade, business, profession or vocation. Payments to relatives for personal support remain private expenses, even when they are made from money earned through freelance work. The position may differ where a family member genuinely works in your business. Salary or wages may be deductible if there is a real role, actual work and proper employment, payroll and payment records. Calling a family transfer “salary” without evidence does not make it a business expense. Keep business and personal records separate. Retain invoices, receipts and payment confirmations for legitimate work expenses, and do not include family support as a business cost unless it is clearly connected to earning income and properly documented.

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