“
The 2026 tax regime in Nigeria is designed to reward compliance and heavily punish evasion. With the new Nigeria Tax Administration Act (NTAA) in full swing, the ‘cost of non-compliance’ has become a major line item for many businesses. Ignoring the taxman is no longer a viable strategy.
New Penalty Brackets for 2026
The authorities have updated the fines to reflect the current economy. Here is what you face for common infractions:
- Failure to Register for Tax: ₦50,000 in the first month; ₦25,000 monthly thereafter.
- Late Filing (CIT/VAT): ₦100,000 in the first month; ₦50,000 monthly thereafter.
- Failure to Deduct WHT: A penalty of 40% of the amount that should have been deducted.
- Non-Remittance of Collected Tax: 10% administrative penalty plus interest at the CBN Monetary Policy Rate (MPR).
To avoid these, ensure you follow the VAT Filing Guide and the CIT Calculation Guide.
Enforcement Beyond Fines
The Nigeria Revenue Service (NRS) now has the power to ‘distrain’—essentially seizing assets or freezing bank accounts—without a court order if taxes remain unpaid after a final demand. In severe cases of fraud or assaulting tax officers, the law allows for imprisonment of up to 10 years. For a breakdown of how the FIRS regulates these, see How FIRS Regulates Business Taxes.
How to Resolve a Penalty
- Apply for a waiver if the delay was due to system issues on the portal.
- Propose a payment plan (Installmental Payment) to stop interest from compounding.
- Engage a certified tax consultant to audit your records for errors.
For real-time interest rate tracking, check the CBN website or consult KPMG Nigeria for dispute resolution advice.
“