taxpayers who fail to meet payment deadlines will pay interest linked to prevailing market rates from October 1, under a new order issued by the Federal Government.
Finance Minister Taiwo Oyedele said naira tax liabilities will attract interest at the CBN’s Monetary Policy Rate plus one percentage point, down from the previous five-point margin.
Foreign currency tax liabilities will attract interest at the Secured Overnight Financing Rate plus six percentage points.
The Nigeria Revenue Service has been directed to publish applicable rates monthly, with interest calculated daily from the date tax becomes due.
The ministry clarified that the order does not remove the existing 10% penalty for late payment, meaning defaulters may face both charges.
The new rates apply from October 1, including on taxes that became due before that date, superseding a 2017 notice on unpaid tax interest.