Nigeria Tax Administration Act, 2025 · s.28, s.51
Tax you deduct from other people
If you withhold tax when you pay a supplier, you file monthly returns for it.
Who this lands on: Anyone who has to deduct or collect tax on a payment.
Where you are required to deduct tax at source, you also render monthly returns on it, in the form the regulations set out.
Deducting it and keeping it is a separate and more serious matter — see the penalty for failure to remit.
Withholding tax you deduct from an individual or unincorporated supplier is remitted to their state, not to the federal service.