Taiwo Oyedele Announces New Tax Interest Framework

The Federal Government has established a new framework linking interest charges on unpaid taxes to prevailing borrowing costs, effective October 1, 2026. Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced this in the Nigeria Tax Administration (Interest on Late Payment of Tax) Order, 2026.

Under this order, interest on naira-denominated tax debts will be set at the Central Bank of Nigeria’s Monetary Policy Rate plus one percentage point, with a minimum rate tied to the yield on 364-day Treasury Bills. For foreign currency tax debts, interest will be based on the Secured Overnight Financing Rate plus six percentage points.

The Nigeria Revenue Service is tasked with publishing applicable rates monthly. Oyedele emphasized that this framework provides certainty for taxpayers regarding the financial consequences of late payments and aims to prevent delayed tax payments from becoming a cheaper form of credit than market rates.