FG cuts interest rate on late tax payment from Oct 1
The Federal Government has reduced the interest rate on late tax payments, with the new regime effective from October 1, 2026, according to the finance min Read More: https://punchng.com/fg-cuts-interest-rate-on-late-tax-payment-from-oct-1/
The Federal Government has reduced the interest rate on late tax payments, effective from October 1, 2026. The new regime, outlined in the Nigeria Tax Administration (Interest on Late Payment of Tax) Order 2026, charges interest at the Central Bank of Nigeria’s Monetary Policy Rate plus one percentage point for tax payable in naira.
This represents a significant reduction from the previous five-percentage-point spread. However, the rate cannot fall below the yield on 364-day Treasury Bills, reflecting the government's borrowing costs when taxes are paid late. For foreign currency taxes, interest will be charged at the Secured Overnight Financing Rate, plus six percentage points, with the official successor rate applying if SOFR is discontinued.
The ministry clarified that the new rates apply uniformly across all tax authorities and will be published monthly on the Nigeria Revenue Service's website. Taxpayers are advised to file returns and payments on time, while those with outstanding liabilities should settle promptly or negotiate with the relevant tax authority.
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