FG Issues New Tax Order To Reduce Interest Rate For Late Payment
The new order lowers late-payment interest and ties it to central bank and market benchmarks, while keeping the 10% penalty unchanged.
- The Federal Government issued the Nigeria Tax Administration Order 2026, reducing interest rates for late tax payments effective October 1, 2026. Minister of Finance and Coordinating Minister of the Economy Taiwo Oyedele signed the order in Abuja.
- This Order replaces the 2017 notice to ensure delayed tax payments are not cheaper than market-rate credit. Government officials stated that when taxes are paid late, the state may borrow to fill the gap, shifting costs to everyone.
- Interest on Naira payments will be the Central Bank Monetary Policy Rate plus one percentage point. For foreign currency, interest is the Secured Overnight Financing Rate plus six percentage points; the 10 per cent penalty under Section 65 of the Act remains unchanged.
- Nigeria Revenue Service will publish applicable rates by the third business day of every month, providing certainty for taxpayers. Oyedele advised taxpayers to file returns on time and settle outstanding liabilities promptly.
- New rates apply to interest arising from October 1, 2026, including liabilities due before that date. Tax authorities retain powers under Section 66 of the Act to waive penalties or interest where good cause is shown.
12 Articles
12 Articles
FG Issues New Tax Order To Reduce Interest Rate For Late Payment
Signed by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, the Order sets the interest rate that applies when tax is not paid on time, as provided under section 65 of the Nigeria Tax Administration Act, 2025.
FG cuts interest on late tax payments
…New rate takes effect October 1…Applies to FG, states, FCT tax authorities By Emma Ujah, Abuja Bureau Chief ABUJA — The Federal Government has reduced the interest rate payable by taxpayers for late settlement of their tax liabilities, with the new regime taking effect from October 1, 2026. Under the new arrangement, interest on tax […]
FG Cuts Interest Rate on Late Tax Payments
The Federal Government has reduced the interest payable on late tax payments, introducing a new regime that links the charges more closely to prevailing market rates. The Nigeria Tax Administration Interest on Late Payment of Tax Order, 2026, issued by the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, takes effect […] The post FG Cuts Interest Rate on Late Tax Payments appeared first on InsideBusiness - Business…
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