The new Nigerian Tax Act, which comes into effect on January 1, 2026, has been hailed as containing reforms capable of transforming the nation’s economy, promoting equity among the populace, improving the financial capabilities of low and medium class workers while substantially bridging Nigeria’s age-long infrastructural gap.

To enforce compliance and effective implementation, some guidelines, including penalties for flouting the laws, have been put in place. Some of the penalties have been outlined below.

Failure to register

N50,000 for the first month of default and N25,000 for each subsequent month Failure to file returns VAT Returns.

N100,000 in the first month in which the failure occurs and N50,000 for each subsequent month Failure to keep books.

For a company, N50,000

Failure to grant access for the deployment of technology

N1,000,000 for the first day of default and N10,000 for each subsequent day of default.

Failure to use fiscalisation system

N200,000 plus 100% of tax due and interest at the prevailing CBN rate per annum.

Failure to deduct tax

40% of the amount not deducted

Failure to make attribution

N100,000 penalty

Failure to remit tax deducted at source or self-account

For failure to remit tax deducted is to pay the amount deducted, collected or withheld but not remitted. And administrative penalty of 10% per annum, and the interest at the prevailing CBN monetary policy rate.

For self-account under this act is liable to pay the tax not self accounted for, an administrative penalty of 10% per annum of the amount not self accounted for, an interest at the prevailing CBN monetary policy rate.

A person convicted of any of the offenses under this section shall be liable to imprisonment up to three years or a fine of not less than the principal amount due plus penalty of not more than 50% of the sum or both.

Failure to attend to demands, request or notices

N100,000 in the first day of default and N10,000 for every subsequent day where the default continues.

Any one who does not provide requested tax information, documents or records within the required time will pay an administrative penalty of N200,000 for the first day of default and N10,000 for each subsequent day where the failure continues.

A person who fails to or refuses to comply with obligations to submit information relating to legal arrangement, notice, rules, regulations, guidelines or circulars issued by the services or any other relevant tax authority is liable to an administrative penalty of N1,000,000 for the first day of default, in addition to 10,000 for each subsequent day of failure, other administrative penalties may apply as stated in any related notice, rule, regulation, guideline or circular.

Penalty for non-compliance by VASP

N10,000,000 in the first month of default, plus N1000,000 for every subsequent month that the default continues or suspension or revocation of operating license by the SEC.

Failure to stamp

With the relevant provisions of the Nigerian tax act, 2025 is liable to pay 10% of the unpaid duty and interest at the prevailing CBN monetary policy rate.

Failure to disclose facts in a dutiable instrument

N100,000 or on conviction, to a fine of N50,000 or imprisonment not exceeding three years or both.

Failure to notify change of address

N100,000 for the first month of default and N5,000 for each subsequent month of the failure continues

Fraud relation to stamps

Conviction to imprisonment for a term of not exceeding three years or a fine of at least N2,000,000 or both

Offence by authorised and unauthorised persons

Is liable on conviction to a fine equivalent to N200% of the sum in question or imprisonment for a term of not exceeding three years or both.

Inducement of an authorised officer

An individual, a penalty of N500,000 and a body corporate, N2,000,000 or imprisonment for a term not exceeding three years or both, in addition to paying the tax due

Use of weapon

Carrying an offensive weapon while committing an offence under this act can lead to imprisonment for a term not exceeding five years.

Anyone who injures a tax officer while armed with a weapon during a tax-related duty faces up to 10 years in prison if convicted.

Impersonation of an authorised officer

Is liable on conviction to a fine not exceeding N1,000,000 or imprisonment for a term not exceeding three years or both.

Aiding and abetting commission of offence

N1,000,000 or imprisonment for a term not exceeding three years or both.

Obstruction

A person, who obstructs, hinders, molest, or assaults an authorised officer impedes searchers or seizure, damages items liable to seizure, prevent the procuring of evidence, or prevents/rescues an arrested person is liable to an administrative penalty of N1,000,000 and upon conviction a fine not exceeding 1,000,000 or imprisonment.