The Digest:
The newly enacted Nigeria Tax Administration Act, 2025, introduces penalties for individuals and companies failing to meet tax obligations, including undocumented transactions and unreported office address changes. The updated law will take effect in January 2026.
The Digest:
- The New Nigeria Tax Administration Act, 2025, outlines strict penalties.
- The act takes effect January 1, 2026, under the Nigeria Revenue Service (NRS).
- Fines range from N10,000 to N10 million, with up to 10 years imprisonment.
- Failure to register incurs a N50,000 fine (first month) + N25,000 monthly.
- Companies using unregistered vendors face a N5 million penalty.
- Failure to file returns incurs a N100,000 fine + N50,000 monthly.
- Mandatory use of fiscalization technology; N1 million fine for refusal.
- Strict penalties for unremitted taxes (10% + CBN MPR interest, up to 3 years jail).
- Virtual Asset Service Providers (VASPs) face a N10 million fine (first month) + N1 million monthly.
- Fraud, false declarations, and obstruction also incur heavy fines and imprisonment.
The new tax law strengthens enforcement and aims to ensure transparency in business transactions, with harsh penalties for non-compliance. The penalties will affect a wide range of sectors, including virtual asset service providers and corporate directors.
