New Nigerian Tax Act 2026: Strict Penalties for Non-Compliance Announced
The Federal Inland Revenue Service (FIRS), under the leadership of Dr. Zacch Adedeji, has highlighted key penalties under the new Nigerian Tax Act, which takes effect on January 1, 2026. The Act is designed to transform Nigeria’s economy, promote equity, strengthen the financial capacity of low- and middle-income earners, and help bridge the nation’s infrastructure gap.
To enforce compliance, the Act imposes fines and sanctions for various defaults:
- Failure to Register: N50,000 for the first month, N25,000 for subsequent months.
- Failure to File VAT Returns: N100,000 for the first month, N50,000 for subsequent months.
- Failure to Keep Books (Companies): N50,000.
- Failure to Grant Access for Technology Deployment: N1,000,000 for the first day, N10,000 for each following day.
- Failure to Use Fiscalisation Systems: N200,000 plus 100% of tax due, with interest at the prevailing CBN rate.
- Failure to Deduct Tax: 40% of the amount not deducted.
- Failure to Remit Tax: Payment of the tax owed plus 10% per annum administrative penalty and interest at the prevailing CBN monetary policy rate.
Additional penalties apply for failure to attend to tax notices, provide required information, notify changes of address, or comply with other legal obligations.
For serious offenses—including fraud, impersonation of tax officers, carrying weapons during tax duties, or causing injury to officers—the Act prescribes fines from N50,000 up to N10,000,000, and imprisonment terms of up to 10 years. Continued non-compliance may also result in suspension or revocation of operating licenses.
Officials have stressed that these measures aim to strengthen accountability, deter tax evasion, and ensure effective implementation of Nigeria’s revenue laws. Individuals and businesses are advised to familiarize themselves with the new regulations to avoid severe penalties.
New Nigerian Tax Act 2026: Strict Penalties for Non-Compliance Announced