The Federal Government has introduced a new interest regime for taxpayers who fail to pay their taxes by the required deadlines, with the new rates taking effect from October 1, 2026.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, issued the Nigeria Tax Administration (Interest on Late Payment of Tax) Order, 2026, pursuant to the Nigeria Tax Administration Act, 2025.
Under the new framework, interest on naira-denominated tax liabilities will be linked to the Central Bank of Nigeria’s Monetary Policy Rate plus one percentage point, subject to a floor based on the yield on 364-day Treasury Bills.
For foreign currency tax liabilities, interest will be calculated using the Secured Overnight Financing Rate plus six percentage points.
Explaining the policy, Oyedele said tax payments belong to the public and that delays could force government to borrow to cover funding gaps.
“This Order ties the cost of late payment to real market rates, so that delaying tax does not become a cheaper form of credit than the market itself,” he said.
The Federal Government said one interest rate will apply for each calendar month, based on the applicable benchmark on the last business day of the preceding month. The Nigeria Revenue Service will publish the applicable rate by the third business day of each month, with interest calculated daily on a simple-interest basis.
The existing 10% late-payment penalty will remain in place, meaning taxpayers who default may face both the penalty and the new market-linked interest.
Social Media Reactions
Richard Yorkoh: You see the direction they are going fuel and rice
When we no pay the tax fuel and rice price to dey increase on a steady basis
Abuja Report: That’s good. Our eyes needs to open soon. Make I do use my 300k but land. Na who get money dey pay tax
Ernest Arinze: Dear Nigerians, if you like take this matter play. Don’t vote right or allow yourself to be swayed by mini bag of rice and 2k
Justin Dyke: The zoo called Nigeriiae is the only oil rich country where fuel and electricity is luxury, where majority of Gen zs don’t even know the country is oil rich 😭
Tertsegha Apine: Nigerians pay tax without seeing any results…
Heart Anthony: Fuel ⛽ Subsidy money and loans they are looking for ways to meet up
KB Kaybee: “Market-linked interest”
Wetin him mean abeg
Falolu Alao Omole: Kinni n wi
Nnaemeka Chris: Nigerians are not angry enough fr
