Nigeria Tax Administration Act, 2025 · Circular 2026/21 ¶13
What it costs when it slips
The familiar filing penalties, plus 40% for failing to deduct and ₦10,000,000 a month for a non-compliant provider.
Who this lands on: Anyone inside the framework. These sit on top of anything the Act already charges.
Failure to register: ₦50,000 for the first month, ₦25,000 for each month after.
Failure to file, or filing an incomplete return: ₦100,000 for the first month, ₦50,000 for each month of default.
Failure to keep books and records: ₦50,000 for a company, ₦10,000 for an individual.
Failure to deduct tax at source: 40% of the amount that should have been deducted. This is the heaviest of the everyday ones.
Failure to remit what you did deduct: the amount itself, plus 10% a year, plus interest at the CBN monetary policy rate.
A service provider or P2P operator in default: ₦10,000,000 for the first month and ₦1,000,000 for each month after.
Non-payment of tax: 10% plus CBN monetary policy rate interest on naira transactions; 10% plus SOFR and a spread on foreign-currency ones.
Ignoring a demand, request or notice: ₦100,000 on the first day and ₦10,000 for every day after. Not answering costs more than answering.
A false VAT refund claim: 100% of the amount claimed, plus interest. Failure to notify a change of address: ₦100,000, then ₦50,000 a month.