September 25, 2026
New Nigerian tax rules tie overdue payments to monthly market rates
From October 1, interest on unpaid naira tax will be set each month under a new federal order, linking the cost of arrears to market benchmarks, Business A.M. reports.
The order sets the interest rate at the Central Bank of Nigeria’s Monetary Policy Rate plus one percentage point, subject to a floor linked to the yield on 364-day Treasury bills. The separate 10 per cent late-payment penalty remains.
The Nigeria Revenue Service is to publish each month’s applicable rate by the third business day, using the benchmark on the final business day of the preceding month. For foreign-currency tax arrears, the report says the rate will be the Secured Overnight Financing Rate plus six percentage points.
That leaves companies with a variable financing cost when they delay tax payments: the eventual charge depends on the applicable benchmark and how long the bill remains unpaid. Business A.M. identifies the instrument as the Nigeria Tax Administration (Interest on Late Payment of Tax) Order, 2026, which takes effect on October 1.