Nigeria Tax Administration Act, 2025 · s.105
Failure to deduct tax
40% of the amount you should have deducted.
Who this lands on: Anyone required to collect, deduct or withhold tax on a payment.
If you were supposed to withhold tax when paying a supplier and you paid them the full amount instead, the charge is 40% of what you did not deduct.
Deduct at the point of payment. Recovering it from a supplier afterwards rarely goes well.