Is a price quotation legally binding?

Yes, a quotation becomes a legally binding contract once accepted in writing by the client within the stated validity period.

What is the difference between a quotation and a proforma invoice?

A quotation is a preliminary commercial proposal outlining scope and pricing. A proforma invoice is a formalized draft invoice used to request advance payment or process customs and bank documentation.

Can I download my quotation as a PDF or share on WhatsApp?

Yes, you can instantly download a clean, print-ready PDF quotation or generate pre-filled WhatsApp share links for immediate client communication.

NIGERIA PRICE QUOTATION GENERATOR

Free Quotation Generator Nigeria

Create professional price quotations and cost estimates in seconds.

Currency:

Quotation Identification

Step 1 of 4

Quote Reference #

Issue Date

Valid Until (Expiry)

Seller & Prospective Client

Step 2 of 4

Service Provider / Seller:

Prepared For (Client):

Scope & Bill of Quantities / Items

Step 3 of 4

Statutory Tax, Discount & Terms

Step 4 of 4

Applicable Tax / VAT Rate (%)

Commercial Discount ()

Payment Milestones & Commercial Terms

Quotation Notes & Expiry Caveats

PRICE QUOTATION

Quote #:

Date:

Valid Until:

PROPOSAL PREPARED FOR:

#	Scope Description	Qty	Unit Rate	Amount

Subtotal:

Commercial Discount:

Total Estimate:

Commercial Terms & Milestones:

Notes & Validity Caveats:

Authorized Seller Signature

Client Acceptance & Date

Nigeria Quotation Generator: Professional Quotations, Nigeria VAT Act (NRS / FIRS), and Withholding Tax Compliance

Generate professional, transparent price quotations and commercial bids designed for Nigerian businesses, tech firms, engineering contractors, and trade suppliers. Calculate itemized scope subtotals in Nigerian Naira (₦), statutory 7.5% Nigeria Revenue Service (NRS / FIRS) Value Added Tax, upfront mobilisation deposits, and FX adjustment clauses aligned with Nigerian corporate procurement standards.

How the Nigeria Quotation Generator Works

The Nigeria Quotation Generator establishes a formal pricing baseline for commercial transactions, preventing misunderstandings before contract execution:

1. Itemized Bill of Quantities

Structures individual materials, technical labor, consultancy days, and logistics with explicit quantities and unit prices in Naira (₦).

2. 7.5% NRS / FIRS VAT & Discount Logic

Applies standard 7.5% statutory VAT for registered entities, handles zero-rated basic foods and medical goods, and factors trade discounts.

3. Validity & Mobilisation Milestones

Embeds clear validity timelines (e.g. 14 - 30 days), upfront commitment deposit requirements (e.g. 70%), and forex volatility clauses.

How to Use the Nigeria Quotation Generator

Enter Vendor & Client Info

Input your registered corporate name, CAC RC/BN number, NRS / FIRS Tax Identification Number (TIN), business phone, and client details.

Add Deliverables & Rates

Specify equipment units, professional services, or installation scope with unit rates in Naira (₦). Add rows as needed.

Set 7.5% VAT & Terms

Specify statutory 7.5% VAT, commercial discounts, advance mobilization deposit terms (e.g. 70% advance, 30% completion), and quote validity.

Download PDF or Share

Verify the live document preview. Download a professional PDF quotation or send directly to the procurement lead via WhatsApp.

Understanding Nigerian Price Quotations and Commercial Governance

Quotation vs. Proforma Invoice vs. Tax Invoice

A **Quotation** is a preliminary offer outlining scope and pricing. A **Proforma Invoice** is requested by corporate accounting or banks for Form M foreign exchange processing or advance payment. A **Tax Invoice** is issued after job delivery to demand payment and account for FIRS VAT.

Withholding Tax (WHT) Deductions in Nigeria

Under Nigeria's Withholding Tax Regulations 2024, corporate clients deduct WHT at source (typically 2% on supply of goods and 5% on professional/consultancy services for incorporated entities) before remitting the net payment to the vendor.

Forex Escalation & Short Validity Windows

Given foreign exchange liquidity and import inflation in Nigeria, quotations for imported hardware, solar inverters, or machinery typically carry a 7 to 14-day validity clause, explicitly stating that prices will be re-benchmarked against the NAFEM exchange rate upon acceptance.

Nigerian Commercial Quotation Calculation Sequence

Commercial price proposals in Nigeria follow a structured mathematical model to compute gross deliverables, tax liabilities, and required commitment deposits:

// 1. Gross Bill of Quantities Subtotal

Gross Subtotal = Sum(Quantity * Unit Price in NGN)

// 2. Commercial Discount Deduction

Net Taxable Amount = Gross Subtotal - Commercial Discount

// 3. FIRS Statutory VAT (7.5%)

FIRS VAT Amount = Net Taxable Amount * 0.075 (for registered entities)

// 4. Total Quoted Contract Price

Total Quoted Price = Net Taxable Amount + FIRS VAT Amount

// 5. Mobilisation Advance Required (e.g. 70%)

Commitment Deposit = Total Quoted Price * 0.70

FIRS VAT Exemption Note: Small businesses with annual taxable turnover below ₦25,000,000 are legally exempt from charging FIRS VAT under the Finance Act. Such enterprises must set the VAT Rate to 0% on their quotations.

Worked Example: Commercial Solar Inverter Installation Quote in Lagos

A renewable energy contractor in Lekki Phase 1, Lagos prepares a commercial quotation for an office backup solar power setup:

Itemized Scope & Bill of Quantities:

10kVA Pure Sine Wave Hybrid Inverter: ₦ 2,850,000.00
2x 15kWh Lithium Iron Phosphate (LiFePO4) Battery: ₦ 7,200,000.00
16x 550W Monocrystalline Solar Panels: ₦ 2,400,000.00
DC Breakers, Surge Protection & Installation: ₦ 850,000.00

Financial & Tax Breakdown:

Gross Subtotal: ₦ 13,300,000.00
Trade Discount (3%): - ₦ 399,000.00
Net Taxable Base: ₦ 12,901,000.00
FIRS VAT (7.5%): ₦ 967,575.00
Total Quoted Contract Value: ₦ 13,868,575.00
70% Upfront Mobilisation Deposit: ₦ 9,708,002.50

Nigerian Commercial Quotation Operating Assumptions

Validity Timeline: Quotation is open for acceptance for exactly 14 calendar days from the date of issuance due to equipment import cost dynamics.
Exchange Rate Clause: Quoted prices for imported hardware are pegged to the official NAFEM USD/NGN exchange rate on the quotation date. Deviations exceeding 5% prior to deposit payment will necessitate price revision.
Payment Milestones: Standard payment schedule is 70% advance mobilisation deposit prior to equipment procurement, and 30% upon physical delivery, installation, and client sign-off.
Withholding Tax Compliance: WHT deducted by the client at statutory rates must be accompanied by an official FIRS Withholding Tax Credit Note within 30 days of payment.

Nigeria Commercial & Tax Quotation Standards

Commercial Parameter	Statutory Standard	Regulatory Reference	Verification Status
Standard VAT Rate	7.5% on taxable goods & services	NRS / FIRS Value Added Tax Act / Finance Acts	Verified 2026
Small Business VAT Exemption	Under ₦25,000,000 annual turnover	Finance Act 2020 / FIRS Guidelines	Verified 2026
Withholding Tax (WHT) Rates	2% on goods supply / 5% on services	Withholding Tax Regulations 2024	Verified 2026
Corporate Registration	Mandatory CAC RC or BN registration	Companies and Allied Matters Act (CAMA 2020)	Verified 2026

Frequently Asked Questions About Nigerian Price Quotations

No, if your annual revenue is below ₦25 million, you are classified as a small business under the Nigerian Finance Act and are legally exempt from charging or collecting VAT. You should set the VAT rate to 0% on your quotation.

A quotation is a commercial price proposal outlining deliverables and estimated costs for client review. A proforma invoice is a formalized draft invoice commonly requested by corporate accounting departments to process advance payments or by commercial banks to open Letters of Credit or process Form M import documentation.

Contractors protect themselves by limiting quote validity to 7 to 14 days and embedding a Forex Price Adjustment Clause. This clause explicitly states that pricing for imported materials is tied to the prevailing NAFEM dollar rate and will adjust proportionally if the exchange rate changes before deposit payment.

A quotation becomes a legally binding contract under Nigerian law once the client accepts it in writing (via an official Purchase Order, signed acceptance slip, or written email confirmation) within the valid duration and fulfills any prerequisite mobilization deposit.

Quotations in Nigeria commonly mandate a 50% to 70% advance mobilization deposit before project commencement, with the remaining balance due upon milestone completion and inspection.

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Nigerian Statutory & Regulatory References:

Nigeria Revenue Service (NRS / FIRS) Value Added Tax Act (Cap V1 LFN 2004 as amended by Finance Acts); Deduction of Tax at Source (Withholding) Regulations 2024; Companies and Allied Matters Act (CAMA 2020); Institute of Chartered Accountants of Nigeria (ICAN).

Last reviewed: September 2026

Jurisdiction: Nigeria (FIRS / CAMA compliant) Currency: Nigerian Naira (NGN, ₦)

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Educational & Decision Support Disclaimer: This Free Online Quotation & Estimate Generator is provided for informational and decision support purposes only. While calculated in accordance with official Nigeria regulatory rules, statutory tax frameworks, and benchmark financial statistics, actual personal or commercial liabilities may vary based on individual contracts and bank charges.