Nigeria to tie tax-payment interest charges to borrowing costs from 2026
The Federal Government says interest charged on unpaid taxes will be linked to borrowing costs under a new framework taking effect on October 1, 2026. The supplied report does not provide the framework’s rate, calculation method or further details about how the change will affect taxpayers.
The Federal Government plans to link interest charges on unpaid taxes to borrowing costs under a new framework scheduled to take effect on October 1, 2026, according to Punch Nigeria. The report identifies the relationship between the charges and borrowing costs as the central feature of the proposed framework. It does not specify which borrowing-cost measure will be used, how often the applicable rate will be reviewed or how the charge will be calculated.
It also does not state whether the framework will apply to all categories of taxpayers or distinguish between different types of unpaid tax. No details were provided in the supplied material on penalties, exemptions or transitional arrangements. The change is therefore currently defined by its effective date and its intended link to borrowing costs.
Further information would be needed to explain the practical impact on taxpayers with outstanding liabilities.
This independently written report is based on information supplied by the named publisher. Vertrix News has not independently verified the source report.