Web development is one of the most in-demand skills in Nigeria's growing tech ecosystem. From solo freelancers building WordPress sites for local SMEs to full-stack developers delivering enterprise platforms for Lagos fintech startups, Nigerian web developers face the same challenge: how do you structure invoices, handle VAT, protect your work, and actually get paid?
This guide covers everything you need to know.
Web Development Billing Models and How to Invoice Each
1. Fixed-Price Project
A single agreed fee for a defined deliverable - the most common model for website builds.
Invoice structure - deposit: | Description | Amount | |---|---| | Website development deposit - 50% upfront (e-commerce site, 10 pages) | ₦375,000 | | Subtotal | ₦375,000 | | VAT (7.5%) | ₦28,125 | | Total | ₦403,125 |
Invoice structure - balance: | Description | Amount | |---|---| | Website development balance - 50% on delivery | ₦375,000 | | Domain registration (.com.ng, 1 year) | ₦12,000 | | Web hosting setup (cPanel, 1 year) | ₦35,000 | | Subtotal | ₦422,000 | | VAT (7.5%) | ₦31,650 | | Total | ₦453,650 |
2. Milestone-Based Billing
For large projects, split payment across defined milestones. This protects both you and the client.
Typical milestone structure:
- Milestone 1 (30%) - Project kickoff, wireframes approved
- Milestone 2 (30%) - Design approved, development 50% complete
- Milestone 3 (30%) - Development complete, UAT sign-off
- Final (10%) - Launch, handover, and training
Issue a separate invoice for each milestone, referencing the milestone name and the overall project.
Milestone invoice example: | Description | Amount | |---|---| | Milestone 2 payment - ERP portal development (design approved, 50% dev complete) | ₦450,000 | | Subtotal | ₦450,000 | | VAT (7.5%) | ₦33,750 | | Total | ₦483,750 |
3. Hourly / Day Rate
Used for ongoing work, bug fixes, or projects with undefined scope.
Invoice example: | Description | Rate | Hours | Amount | |---|---|---|---| | Backend API development - user authentication module | ₦15,000/hr | 12 hrs | ₦180,000 | | Code review and documentation | ₦15,000/hr | 3 hrs | ₦45,000 | | Subtotal | | | ₦225,000 | | VAT (7.5%) | | | ₦16,875 | | Total | | | ₦241,875 |
Keep a timesheet and attach it to hourly invoices - especially for corporate clients.
4. Monthly Retainer
For ongoing maintenance, feature additions, or dedicated developer time.
Invoice example: | Description | Amount | |---|---| | Development retainer - April 2026 (40 hours, bug fixes, feature updates, monthly deploy) | ₦300,000 | | Subtotal | ₦300,000 | | VAT (7.5%) | ₦22,500 | | Total | ₦322,500 |
Mandatory Elements on a Nigerian Web Development Invoice
Every invoice must include:
- Your name or business name - and your address
- TIN - if VAT-registered with FIRS
- Client details - name, company, address, TIN for corporate clients
- Invoice number - unique and sequential (e.g., DEV-2026-019)
- Invoice date and due date
- Itemised services - not a single "web development" line item
- VAT at 7.5% - as a separate line (if registered)
- Payment details - bank account or Paystack link
VAT for Nigerian Web Developers
Register for VAT if your annual income exceeds ₦25 million. You then charge 7.5% VAT on all development invoices and remit it monthly to FIRS.
Below the threshold, registration is optional - but many developers register voluntarily to work seamlessly with corporate clients who need VAT invoices for their own tax filings.
Note on third-party costs: If you purchase a domain, hosting, or plugin licences on the client's behalf and pass the cost through at cost price, those are reimbursable expenses - not your revenue. Invoice them separately without VAT (or with a note that VAT was paid by the supplier). Do not charge 7.5% on top of a Namecheap or cPanel invoice you are just passing on.
Withholding Tax (WHT) on Web Development
Corporate clients deduct 5% WHT from your development fees. They issue you a WHT credit note.
Example:
- Your invoice: ₦500,000 + ₦37,500 VAT = ₦537,500
- WHT deducted: 5% × ₦500,000 = ₦25,000
- Client pays: ₦512,500
- WHT credit note: ₦25,000
Protecting Your Code Before Final Payment
Never hand over production access, source code, or repository credentials before full payment. Use this approach:
- Deploy to a staging environment for client review and sign-off
- Get written acceptance (email or WhatsApp message confirming approval)
- Issue the final invoice referencing the accepted milestone
- Transfer production access and source files only after payment clears
Include this in your contract: "Source code, Git repository access, and production credentials will be transferred to the client upon receipt of full and final payment."
Getting Paid as a Nigerian Web Developer
Use Milestone Invoicing
Never do 100% of the work before any payment. Milestone invoicing aligns payment with delivery and protects your time.
Paystack Payment Links
Add a Paystack link to every invoice. Corporate clients can pay by bank transfer; individual clients can use cards or USSD. The link removes the friction of manual bank transfers.
Include Your Contract Reference
Always reference the signed contract or statement of work on every invoice: "Re: Web Development Agreement signed 15 January 2026." This makes disputes far harder to sustain.
Late Payment Clause
Add to every invoice: "Overdue balances attract interest at 3% per month. Development work will be paused on accounts overdue by more than 7 days."
Create Your Free Web Developer Invoice
InvoiceGenerator.ng is built for Nigerian freelancers and tech professionals. Create milestone-based or retainer invoices with automatic VAT, Paystack links, and WhatsApp delivery - free.
See our full Nigerian Invoicing Guide for more on FIRS compliance, VAT registration, and getting paid faster.