AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
The Nigeria Tax Administration Act 2025 sets fixed administrative penalties such as ₦50,000 for the first month of failing to register and ₦100,000 for the first month of a late return, plus 10% of unpaid tax with interest at the CBN monetary policy rate. Failing to deduct tax costs 40% of the amount not deducted, and failing to stamp costs 10% of the duty plus interest.
General penalties (as of October 2026)
| Failure | Administrative penalty | Section (NTAA 2025) |
|---|---|---|
| Not registering for tax and obtaining a Tax ID | ₦50,000 for the first month; ₦25,000 for each further month | s.100(1) |
| Awarding a contract to an unregistered person (statutory body or company) | ₦5,000,000 | s.100(2) |
| Not filing a return, or knowingly filing an incomplete or inaccurate one | ₦100,000 for the first month; ₦50,000 for each further month | s.101 |
| Not keeping books, or not producing them on request | ₦10,000 (person other than a company); ₦50,000 (company) | s.102 |
| Refusing access to deploy technology, 30 days after notice | ₦1,000,000 for the first day; ₦10,000 for each further day | s.103 |
| Not passing a taxable supply through the fiscalisation system | ₦200,000 plus 100% of the tax due plus interest at the CBN MPR a year | s.104 |
| Not deducting, collecting or withholding tax | 40% of the amount not deducted | s.105 |
| Not making a required attribution, or not notifying it | ₦1,000,000 | s.106 |
| Not remitting tax deducted by the 21st of the next month | The amount, plus 10% a year, plus interest at the CBN MPR | s.107(1) |
| Not self-accounting on time | The tax, plus 10% a year, plus interest at the CBN MPR | s.107(2) |
| Not complying with a notice, or not attending or answering | ₦100,000 for the first day; ₦10,000 for each further day | s.108(1) |
| Not supplying information or documents demanded | ₦200,000 for the first day; ₦10,000 for each further day | s.108(2) |
| Not submitting information on a legal arrangement as prescribed | ₦1,000,000 for the first day; ₦10,000 for each further day | s.108(3) |
| Virtual asset service provider non-compliance | ₦10,000,000 in the first month; ₦1,000,000 for each further month, or licence suspension or revocation by the SEC | s.109 |
| Not stamping a dutiable instrument | 10% of the unpaid duty plus interest at the CBN MPR | s.110 |
| Not disclosing facts in a dutiable instrument, or underpaying duty | ₦100,000 (or on conviction ₦50,000 fine, up to 3 years, or both) | s.111 |
| Not notifying a change of address within 30 days, or of permanent cessation | ₦100,000 for the first month; ₦50,000 for each further month | s.112 |
| False declaration or untrue statement | ₦1,000,000 plus the tax undercharged | s.124 |
| Counterfeiting or altering tax documents | ₦1,000,000, and on conviction up to 3 years or ₦1,000,000 fine or both | s.125 |
| Any breach with no specific penalty | ₦1,000,000, or on conviction up to 3 years or a fine or both | s.127 |
Late payment of tax
Section 65 applies to any tax not paid within the time allowed:
- a sum equal to 10% of the tax is added;
- naira liabilities carry interest at the CBN monetary policy rate plus a spread set by the Minister, from the due date until payment;
- foreign currency liabilities carry interest at SOFR (or its successor) plus a spread set by the Minister;
- the authority serves a demand notice, and if it is not paid within 30 days it can enforce, including by distraint and court action (s.61, s.67).
Penalty and interest are not treated as tax paid for any relief (s.65(3)). Where an extension is granted and missed, penalty and interest run from the original due date (s.49(6)).
Worked example (illustrative figures)
A company's ₦2,000,000 tax is due on 30 June and paid on 30 September. It owes the tax, plus ₦200,000 (10%), plus interest on ₦2,000,000 for three months at the monetary policy rate plus the Minister's spread. If the company also filed its return two months late, add ₦100,000 for the first month and ₦50,000 for the second, a further ₦150,000.
Offences with criminal penalties
| Offence | Penalty on conviction | Section |
|---|---|---|
| Non-remittance of tax deducted | Up to 3 years, or a fine of at least the principal plus up to 50%, or both | s.107(3) |
| Removing, reusing or forging revenue stamps | Up to 3 years, or a fine of at least ₦2,000,000, or both | s.113 |
| Tax official taking gratification or diverting tax | Fine of 200% of the sum, or up to 3 years, or both | s.114 |
| Inducing an authorised officer | ₦500,000 (individual); ₦2,000,000 or up to 3 years (body corporate) | s.115 |
| Committing an offence armed; injuring an officer while armed | Up to 5 years; up to 10 years | s.116 |
| Impersonating an officer; aiding and abetting | Up to ₦1,000,000 or 3 years or both; ₦1,000,000 or 3 years or both | s.117-118 |
| Obstruction | ₦1,000,000 administrative penalty; on conviction up to ₦1,000,000 or 3 years or both | s.119 |
| Refund obtained by false claim | 50% of the amount plus interest (income tax refunds); 100% plus interest (VAT refunds) | s.121-122 |
Directors, partners, trustees and managers can be prosecuted for offences by a body corporate unless they prove it happened without their knowledge or consent (s.126).
Remission and avoiding penalties
The relevant tax authority may remit all or part of a penalty or interest for good cause, and must report waivers monthly to the Minister or Commissioner (s.66). The cheapest course is to diarise every deadline: see the 2026/2027 tax calendar, the withholding tax rules and keeping records that stand up to an audit.
How we put this together
We read the gazetted texts of the Nigeria Tax Act 2025 and the Nigeria Tax Administration Act 2025 (Official Gazette No. 117, Vol. 112, dated 26 June 2025) section by section. The Nigeria Revenue Service website lists these Acts on its laws page, but its topic pages load in the browser and could not be read by our tools, so we worked from copies of the Gazette hosted by a third party and checked figures against the section and schedule numbers quoted here. Regulations, practice notes and orders issued after the Acts may change how a rule applies; where something depends on an order or regulation we say so. Petroleum-specific penalties in Part II of Chapter Four (sections 128 to 137) are not included in the first table. The example is ours.
Questions people ask
What is the penalty for late filing of tax returns in Nigeria?
₦100,000 for the first month and ₦50,000 for each further month, under section 101 of the Nigeria Tax Administration Act 2025.
What is the penalty for not registering for tax in Nigeria?
₦50,000 for the first month and ₦25,000 for each further month. A company that gives a contract to an unregistered person faces ₦5,000,000.
What interest is charged on late tax in Nigeria?
For naira tax, the CBN monetary policy rate plus a spread set by the Minister, on top of a 10% penalty. For foreign currency tax, SOFR plus a spread.
Can tax penalties be waived in Nigeria?
Yes. Section 66 lets the tax authority remit all or part of a penalty or interest for good cause.
Sources
- Nigeria Tax Administration Act, 2025 (Act No. 5), Official Gazette No. 117, 26 June 2025 (gazetted copy) · accessed Oct 2026
- Nigeria Tax Act, 2025 (Act No. 7), Official Gazette No. 117, Vol. 112, 26 June 2025 (gazetted copy) · accessed Oct 2026
- Nigeria Revenue Service: Laws and regulations · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.