Businesses Face 10% Penalty For Tax Default From October 1

Businesses with unpaid tax liabilities will face a 10 per cent statutory penalty and daily interest from October 1, 2026, under a new federal government regime linking the cost of tax arrears to prevailing borrowing rates.
The framework is contained in the Nigeria Tax Administration (Interest on Late Payment of Tax) Order, 2026, issued by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, pursuant to Section 65 of the Nigeria Tax Administration Act, 2025.
The Order replaces the 2017 notice and other earlier notices governing interest on unpaid taxes.
Under the new regime, interest on naira-denominated tax liabilities will be charged at the Central Bank ...