The new Nigerian Tax Act, effective January 1, 2026, introduces comprehensive reforms and strict penalties for non-compliance, ranging from fines and interest charges to imprisonment for offences including failure to register, remit taxes, or obstruct authorised officers.
The 2025 Nigerian Tax Act, which comes into force on January 1, 2026, is designed to reform the nation’s tax system, promote equity, improve financial capacity for low- and medium-income earners, and bridge the infrastructural gap.
To enforce compliance, penalties have been clearly outlined for various infractions. For instance, failure to register attracts N50,000 for the first month and N25,000 for subsequent months, while failure to file VAT returns incurs N100,000 for the first month and N50,000 thereafter.
More serious violations, such as obstructing or assaulting tax officers, can result in imprisonment ranging from three to ten years and administrative fines up to N1,000,000.
Other offences include failing to remit or deduct taxes, failing to disclose information, fraud related to stamps, impersonation of officers, inducement, and use of weapons during offences, with penalties ranging from substantial fines to imprisonment.
The act also imposes strict sanctions on virtual asset service providers (VASPs), including fines up to N10,000,000, license suspension, or revocation by the SEC.
Executive Chairman of FIRS, Dr Zacch Adedeji, emphasised that these measures are intended to ensure effective compliance and enforcement, while Attorney General and Minister of Justice, Chief Lateef Fagbemi (SAN), highlighted the legal consequences for non-compliance.