A non-resident person is deemed to have a taxable presence representing a permanent establishment in Nigeria if:

It has in the country a fixed place from which it carries out, wholly or partly, a trade or business, unless the facility is used solely for storage or display of goods or the collection of information;
It maintains in Nigeria a stock of goods or merchandize from which deliveries are regularly made to clients; or
It regularly conducts business through an agent authorized to conclude contracts on its behalf or on behalf of persons controlling or controlled by the non-resident.

Nigerian domestic law does not prescribe a minimum duration for a place of business to be characterized as a fixed base in Nigeria. Further, where a non-resident executes a turnkey contract (a single contract for surveys, deliveries, installation, or construction) in Nigeria, the entire profit is taxable in Nigeria, irrespective if a part of the contract is performed outside Nigeria.

Nigeria recently introduced the concept of significant economic presence. Under the concept, foreign persons undertaking specified activities in Nigeria without having a physical presence therein amounting to a permanent establishment may still be deemed to have a taxable presence in Nigeria (see Sec. 5.4. for details).

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