The Federal Government of Nigeria has announced a reduction in the interest rate applied to late tax payments, a change that will take effect on 1 October 2026. The move was disclosed by the finance minister in a recent statement to the media.
Under the new regime, taxpayers who settle overdue obligations after the statutory deadline will be charged a lower interest rate than under the previous policy. The decision is part of a broader effort to improve tax compliance and increase revenue collection for the national budget.
While the exact figures of the revised rate were not disclosed in the announcement, officials said the adjustment is intended to make late payments more affordable and to encourage businesses and individuals to meet their tax obligations on time.
Tax collection remains a critical component of Nigeria’s fiscal policy, with the government relying heavily on domestic revenue to fund public services and infrastructure projects. By easing the cost of late payments, the administration hopes to reduce the backlog of unpaid taxes and strengthen the overall tax base.
Further details, including the precise interest rates and any accompanying guidelines, are expected to be released by the Federal Ministry of Finance in the coming weeks. The announcement was made through an official press release, and the ministry has urged taxpayers to review the new terms carefully as the effective date approaches.
<small>Source: Punch Nigeria — read the original story there.</small>