Nigeria Tax Administration Act, 2025 · s.107
Failure to remit what you deducted
The money is still owed, plus 10% a year and interest — and it can end in a prosecution.
Who this lands on: Anyone who deducted, collected or withheld tax and kept it.
Tax you deducted, collected or withheld must be remitted by the 21st day of the month after you took it.
Miss that and you owe the amount itself, an administrative penalty of 10% a year of it, and interest at the Central Bank of Nigeria monetary policy rate.
The same applies where you were required to self-account for tax and did not.
On conviction: up to three years, or a fine of at least the principal plus up to 50%, or both.
This is money that was never yours. Keep it separate and it never becomes a problem.