← The Act in plain English

Nigeria Tax Administration Act, 2025 · s.65–s.67

Late payment: 10% plus interest

Unpaid tax carries 10%, plus interest from the due date until it is paid. Penalties can be remitted for good reason.

Who this lands on: Anyone who pays after the date.

Where tax is not paid in time, 10% of the tax is added to it.

On naira remittances, interest runs at the Central Bank of Nigeria monetary policy rate plus a spread set by the Minister, from the day the tax became payable until it is paid.

On foreign currency remittances, interest runs at SOFR (or its successor rate) plus 10%, or another spread set by the Minister.

The tax authority may remit a penalty where there is good cause (s.66). Unpaid tax can be recovered as a debt (s.67).

Interest runs on the amount, not on the argument. Pay what you agree you owe, then dispute the rest.

Also in When the tax authority calls

This is a plain reading of the Act for orientation, not tax advice. Where money is at stake, check the section itself or ask an accredited tax agent.