FG Cuts Interest Rate On Late Tax Payment To MPR + 1%

The federal government has reduced the interest rate payable on late tax payments from the Central Bank of Nigeria’s (CBN) Monetary Policy Rate (MPR) plus five percentage points to MPR plus one percentage point, in a move aimed at aligning the cost of tax arrears with prevailing market rates.
This follows the resetting of the MPR at the end of the Monetary Policy Committee (MPC) meeting on Tuesday from 26.5 per cent to 23 per cent, the first big cut in years. According to the Ministry of Finance in a statement, the cut which takes effect from October 1, 2026, will apply uniformly to tax administered by the Nigeria Revenue Service (NRS), state tax authorities and the Federal Capital Terr...