Nigeria’s New Late-Tax Interest Rules: What Companies Face From October

Nigeria’s new late-tax payment regime takes effect on October 1, 2026. Interest on overdue naira tax liabilities will be set at the Central Bank of Nigeria’s Monetary Policy Rate plus one percentage point, subject to a minimum tied to the 364-day Treasury-bill yield. The separate statutory 10% late-payment penalty remains in force. With the MPR at 23%, the current rate would begin at 24%, unless the Treasury-bill floor is higher. Interest will be calculated daily and the applicable monthly rate will be published by the Nigeria Revenue Service. Foreign-currency tax liabilities will use a separate benchmark of SOFR plus six percentage points. For companies, the change makes it easier to compare the cost of delayed tax payments with bank loans, supplier credit and other short-term funding. Finance teams will need to track tax due dates, principal liabilities, monthly rates, penalties and expected settlement dates. The key question is whether the revised formula will encourage faster remittance and improve government revenue timing.

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