Nigerian Tax Act 2025 Introduces Severe Penalties for Non-Compliance

Nigerian business owners and executives have historically treated notices from tax authorities as low-priority issues. However, the Nigeria Tax Administration Act (NTAA) 2025 has significantly changed the penalty regime for non-responsiveness.

Under the new law, penalties begin at N100,000 on the first day of default, with an additional N10,000 for each subsequent day. If specific financial records are not provided, the initial penalty increases to N200,000.

For failures related to statutory reporting disclosures, the penalty starts at N1,000,000. A delay of just 60 days in providing requested documents can lead to an automatic liability of N790,000.

This new framework emphasizes the urgency of compliance and raises critical questions about the timing of penalties and the responsibilities of corporate governance.