Nigeria's Finance Minister Announces New Tax Interest Framework

The Federal Government has announced a new framework for calculating interest on late tax payments, set to take effect from October 1, 2026. This framework, known as the Nigeria Tax Administration Order 2026, was signed by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, and replaces the previous five-percentage-point spread for overdue taxes.

Under the new rules, taxpayers with tax liabilities in naira will incur interest at the Central Bank of Nigeria’s Monetary Policy Rate plus one percentage point, with a minimum rate equivalent to the yield on 364-day Treasury Bills. For foreign currency tax liabilities, the interest will be based on the Secured Overnight Financing Rate plus six percentage points.

The Nigeria Revenue Service will publish applicable interest rates monthly. Oyedele emphasized that the new arrangement is designed to prevent taxpayers from benefiting from late payments and to provide greater certainty in interest calculations.

The Order supersedes the 2017 notice on unpaid taxes and does not alter the existing 10 percent penalty for late payments.