Nigeria’s new Tax Act, effective January 1, 2026, introduces stringent penalties for non-compliance, signaling a shift from administrative enforcement to tougher measures. Virtual asset service providers face fines of N10 million for the first month of default and N1 million monthly thereafter, alongside potential SEC licence suspension. Assaulting tax officers can attract up to 10 years in prison, while inducing or injuring them carries fines and jail terms depending on the severity.
The legislation also mandates strict penalties for failing to register, file VAT returns, maintain proper books, or use digital tax systems. Stamp duty and tax deduction offences carry fines, interest, and imprisonment for serious cases. Impersonating, obstructing, or aiding tax offences can lead to fines up to N1 million or jail terms up to three years. Authorities aim to boost compliance, revenue collection, and tax system modernisation.