Nigerian Tax Act 2025: Hefty Penalties Await Defaulters Starting January

By: Abudu Olalekan

If you’re a Nigerian worker, small business owner, or anyone who’s ever had to fumble through tax forms—this isn’t a story you can brush off. The new Nigerian Tax Act kicks off January 1, 2026. Folks are saying it could turn the economy around, even help low and medium-class folks hang onto a little more cash, and chip away at those old infrastructure gaps we’ve all griped about for years. But here’s the catch: they’re not messing around with the rules. Mess up, and you’ll pay—big time.

Let’s start with the basics. Forget to register for taxes? That’ll cost you N50,000 the first month you’re late. Then N25,000 for every month after that. It adds up fast, trust me.

What about VAT returns? Skip filing those, and you’re looking at N100,000 the first month you drop the ball. Then N50,000 each month you keep dragging your feet. Don’t think no one’s gonna notice—they will.

Failure to keep proper books? For a company, that’s a flat N50,000. No excuses about lost papers or busy days.

And if you refuse to let tax folks use their tech to check your records? That’s a big one. N1,000,000 the first day you say no. Then N10,000 every single day after that. That bill’ll spiral out of hand before you know it.

Not using the required fiscalisation system? You’re on the hook for N200,000 plus 100% of the tax you owe, plus interest at whatever the CBN rate is right now. That’s double trouble.

Forget to deduct tax when you’re supposed to? 40% of the amount you missed. That’s not a small chunk of change, especially if you’re running a tight ship.

Then there’s failing to remit tax—either the stuff you deducted from others or your own self-accounted tax. For the deducted stuff? You have to pay back that full amount, plus a 10% annual admin penalty, plus CBN interest. For self-account? Same vibe: pay the tax you skipped, 10% a year penalty, plus that interest. And if you get convicted of any of these? Up to three years in jail, or a fine that’s at least the amount you owed plus 50% more. Or both. Yeah, that’s harsh.

Skip a tax notice or demand? N100,000 the first day. Then N10,000 every day you keep ignoring it. Don’t provide the info they ask for by the deadline? N200,000 first day, N10,000 after that. Refuse to share stuff about your legal arrangements? N1,000,000 the first day, plus N10,000 each day—plus whatever other penalties the tax folks throw in, too.

VASPs (that’s virtual asset service providers, if you ain’t heard) who don’t comply? N10,000,000 the first month, then N1,000,000 each month after. Or they could yank your operating license entirely.

Forget to stamp your tax documents? 10% of the unpaid duty plus CBN interest. Don’t disclose all the facts on a dutiable paper? N100,000, or a N50,000 fine and up to three years in jail. Or both.

Change your address and don’t tell the tax office? N100,000 first month, N5,000 each month after that. Fraud with stamps? Up to three years in jail or at least N2,000,000 fine. Or both.

Mess with a tax officer? Obstruct them, carry a weapon while messing up on taxes? Up to five years in jail. Hurt one while armed? 10 years, if convicted. Impersonate an authorised tax officer? N1,000,000 fine or three years. Help someone commit a tax offence? Same.

This ain’t a joke. You can read the full, no-fluff breakdown over at reportersroom.com/nigeriantaxrules. Don’t wait till 2026 to get your tax stuff straight—you don’t wanna be the one stuck with a bill you can’t pay, or worse.