The Nigeria Tax Administration Act, 2025 harmonises how federal, state and local tax authorities register taxpayers, assess tax and enforce payment. It also raises many penalties. Knowing the numbers is the best argument for staying compliant.
Key penalties
| Default | Penalty |
|---|---|
| Failure to register / obtain a TIN | ₦50,000 first month, ₦25,000 each further month |
| Awarding a contract to an unregistered person | ₦5,000,000 |
| Failure to file, or filing incomplete/inaccurate returns | ₦100,000 first month, ₦50,000 each further month |
| Late payment of tax | 10% of the tax due, plus interest at the CBN monetary policy rate |
| Failure to comply with a notice | ₦20,000,000, then ₦2,000,000 per day, or six months’ imprisonment |
Directors and officers can be personally liable for offences committed by a company unless they prove the act occurred without their knowledge, consent or connivance.
Key deadlines
- Individual annual returns: 31 March.
- Employer annual PAYE returns: 31 January.
- Monthly VAT returns: 21st of the following month.
- Payment of an assessment: within 30 days of service of the notice, unless objected to.
Challenging an assessment
- Objection: file a notice of objection within 30 days of the assessment. The authority must respond within 90 days, or the objection is treated as upheld.
- Tax Appeal Tribunal: appeal within 30 days of the decision. The Tribunal can allow up to 30 days for amicable settlement at the first appearance.
- Further appeals: to the Federal High Court on points of law within 30 days, then to the Court of Appeal and Supreme Court.
- Office of the Tax Ombud: a free service that resolves administrative complaints through mediation and conciliation. It cannot determine tax liability or review matters already before a court or tribunal.
Sources
- Banwo & Ighodalo — A taxpayer’s guide to compliance, offences, penalties and dispute resolution
- EY — From legislation to action: 2026 business outlook on tax reforms in Nigeria and Ghana
This article is general information based on the Nigeria Tax Act 2025, the Nigeria Tax Administration Act 2025 and published commentary as at its date. It is not tax advice. Rules, thresholds and NRS guidance may change — speak to KJB about your specific circumstances.
