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Every taxable person must register with the relevant tax authority and obtain a Tax ID. A government body or company that gives a contract to someone who is not registered is also penalised.

Possible consequence

₦50,000 for the first month you are unregistered, then ₦25,000 for each further month. A body that awards a contract to an unregistered person pays ₦5 million. s. 100

Source

s. 4 in the Tax Administration Act

Your Tax ID must appear on tax returns and on documents for transactions, and you need it to get a contract with any federal, state or local government body. Banks, insurers and stockbrokers must collect it from customers.

Possible consequence

Where a contravention has no specific penalty, section 127 provides a ₦1 million administrative penalty or, on conviction, up to three years in prison, a fine, or both. Applicability depends on the precise contravention and any specific statutory provision. s. 127

Source

s. 8 in the Tax Administration Act

Every person, including a company exempt from incorporation, must keep sufficient books and records to establish tax liability, whether or not tax is payable. Keep them for at least six years after the relevant year of assessment. Where records are in another language, the authority can require a certified English translation at the taxpayer’s expense.

When

Keep each year's records for at least six years

Possible consequence

₦10,000 for an individual, ₦50,000 for a company, for failing to keep books or to produce them on request. s. 102

Source

s. 31 in the Tax Administration Act

You may only process personal data if the person consented, or it is necessary for a contract with them, a legal obligation, their vital interests, a public task, or your legitimate interests where those do not override theirs. Collect only what you need and do not keep it longer than necessary.

Possible consequence

After investigation, the Commission may order remedies, compensation for injury, loss or harm, an account of profits, or a penalty. The penalty ceiling is the greater of ₦2 million and 2% of the preceding financial year’s annual gross revenue, or the greater of ₦10 million and 2% for controllers or processors of major importance. Failure to comply with an order under section 47 is separately an offence under section 49, carrying a fine, up to one year in prison, or both. ss. 48 and 49

Source

ss. 2, 24 and 25 in the Data Protection Act

VAT is charged at 7.5% on all taxable supplies that are not zero-rated or exempt.

When

Charged on every taxable sale; paid with the monthly VAT return

Possible consequence

Failing to collect VAT you should have charged costs 40% of the amount not collected. Nigeria Tax Administration Act, s. 105

Source

s. 147 in the Nigeria Tax Act

Employers must deduct employee income tax under section 51. Remittance is a separate obligation with penalties under section 107. This draft does not provide a universal PAYE remittance date because the statutory trigger and published tax-authority guidance need reconciliation.

When

Section 107 specifies a 21st-of-following-month remittance penalty trigger, while current FCT-IRS guidance publishes a 10th-of-month PAYE due date. The applicable payroll regulations and tax-authority deadline must be resolved before this becomes a production reminder.

Possible consequence

Failing to deduct costs 40% of the amount not deducted. Failing to remit means paying the tax, 10% a year on it, and interest; on conviction, up to three years in prison or a fine of the amount due plus up to 50%. ss. 105 and 107

Source

ss. 51(6)–(7) and 107 in the Tax Administration Act

The normal VAT return deadline is the 21st of the following month, including nil-activity months. Small-business relief, elective opt-in, petroleum-operation rules and technology-prescribed returns under section 22 must be considered. An extension for filing does not by itself extend payment time.

When

By the 21st of the following month

Possible consequence

₦100,000 for the first month late, then ₦50,000 for each further month. s. 101

Source

s. 22(1)–(4) in the Tax Administration Act

Every company that is not a small company pays tax on its profits at 30%.

When

With your annual company income tax return

Possible consequence

Late tax under section 65 attracts a 10% addition. Naira remittances carry interest at the prevailing CBN monetary policy rate plus the prescribed spread; foreign-currency remittances use SOFR or its successor plus the prescribed spread. Enforcement follows the statutory notice requirements. Nigeria Tax Administration Act, s. 65

Source

s. 56(b) in the Nigeria Tax Act

Companies other than small and non-resident companies pay a levy of 4% of assessable profits. Half goes to TETFund, 15% to the Nigerian Education Loan Fund, and the rest to technology, science, cybersecurity and defence funds. The levy is not imposed on assessable profits computed for hydrocarbon tax under section 59(4).

When

With your annual company income tax

Possible consequence

Late tax under section 65 attracts a 10% addition. Naira remittances carry interest at the prevailing CBN monetary policy rate plus the prescribed spread; foreign-currency remittances use SOFR or its successor plus the prescribed spread. Enforcement follows the statutory notice requirements. Nigeria Tax Administration Act, s. 65

Source

s. 59 in the Nigeria Tax Act

The National Assembly edition provides for an additional tax where the effective rate falls below 15%. Its scope includes specified multinational group members and other companies with aggregate turnover of ₦50 billion or more, with further qualifications. The group threshold, currency and implementing rules require final verification before this provision can be used for calculation.

When

Each year of assessment

Possible consequence

Late tax under section 65 attracts a 10% addition. Naira remittances carry interest at the prevailing CBN monetary policy rate plus the prescribed spread; foreign-currency remittances use SOFR or its successor plus the prescribed spread. Enforcement follows the statutory notice requirements. Nigeria Tax Administration Act, s. 65

Source

s. 57 in the Nigeria Tax Act

Profits or gains from transactions in digital or virtual assets are listed as income chargeable to tax.

When

Declared in your annual return

Possible consequence

Knowingly filing an incomplete or inaccurate return attracts an administrative penalty: ₦100,000, then ₦50,000 for each month it continues. Late-payment additions and currency-specific interest are governed separately by section 65. Nigeria Tax Administration Act, ss. 65 and 101

Source

s. 4(1)(j) in the Nigeria Tax Act

Individuals and companies have annual-return duties even when no tax is payable, under the relevant provisions. Employees must also file their own annual return of income from all sources. Company returns follow section 11; it excludes a nonresident company’s return under subsection (2) for a year in which its only income has already suffered final tax at source.

When

Individuals: the applicable annual-return deadline must be checked against current regulations and authority guidance. Established companies: within six months after accounting year-end; newly incorporated companies: 18 months after incorporation or six months after the first accounting period, whichever is earlier, subject to section 11.

Possible consequence

₦100,000 for the first month you fail to file, or knowingly file an incomplete or inaccurate return, then ₦50,000 for each further month. s. 101

Source

ss. 11, 13 and 14(3) in the Tax Administration Act

Tax due must be paid on or before the due date of filing, in one sum or in instalments with the last one by the filing date. An extension to pay that you then miss counts as if there was no extension.

When

On or before the due date of filing

Possible consequence

Late tax under section 65 attracts a 10% addition. Naira remittances carry interest at the prevailing CBN monetary policy rate plus the prescribed spread; foreign-currency remittances use SOFR or its successor plus the prescribed spread. Enforcement follows the statutory notice requirements. s. 65

Source

s. 49 in the Tax Administration Act

Employers must file a return for all employees' pay for the previous year by 31 January, showing each employee's gross pay, benefits, deductions and tax deducted.

When

31 January each year

Possible consequence

₦100,000 for the first month late, then ₦50,000 for each further month. s. 101

Source

s. 14(1)–(2) in the Tax Administration Act

A labelled startup must provide annual headcount, asset and turnover information, keep proper accounts, report annually on incentives and resulting advancement, and notify the Coordinator within one month of changes to its structure, composition or objects. It must also meet the Act’s other compliance and eligibility requirements. After notification of a default, it has 30 days to take steps to rectify it; an unregularised default leads to label withdrawal.

When

Every year; changes to structure or objects within one month

Possible consequence

Sections 16–17 provide for withdrawal of the label if a notified default is not regularised, with notice to relevant agencies and investors. These sections do not specify a monetary fine; other applicable laws may have separate consequences. ss. 16(2) and 17

Source

ss. 16 and 17 in the Startup Act

You must present your NIN to get a passport or voter's card, join a government programme or subsidy, open a bank account, make financial transactions, buy insurance, register a SIM, buy or register land, take consumer credit, deal with pensions and health insurance, and pay taxes. Whoever provides the service must verify your identity with it.

When

Whenever you use or provide one of the listed services

Possible consequence

No penalty is summarised here; this does not establish that none applies.

Source

s. 26(1) and (4) in the NIMC Act

You must tell NIMC about changes to your recorded information and any errors you know of, and notify it if your identity credential is lost, stolen, damaged, tampered with or destroyed.

When

When your details change or your ID is lost, stolen or damaged

Possible consequence

No penalty is summarised here; this does not establish that none applies.

Source

ss. 21 and 22 in the NIMC Act

Tell the tax authority within 30 days when your name, trading name, business location, phone, email or registered address changes, and, for companies, when anyone comes to hold 5% or more of the shares or the business is sold or merged. The provision also covers relevant beneficial-ownership, trust, partnership and cessation or transaction particulars.

When

Within 30 days of the change

Possible consequence

For a change of address or ceasing business: ₦100,000 for the first month, then ₦50,000 for each further month. s. 112

Source

s. 9 in the Tax Administration Act

Data controllers must respond to access and correction requests without constraint or unreasonable delay. Give the information and copy required by section 34, correct inaccurate data, and assess erasure requests against lawful-retention requirements and applicable exceptions; a request does not automatically override a legal obligation to keep records.

When

Without constraint or unreasonable delay

Possible consequence

After investigation, the Commission may order remedies, compensation for injury, loss or harm, an account of profits, or a penalty. The penalty ceiling is the greater of ₦2 million and 2% of the preceding financial year’s annual gross revenue, or the greater of ₦10 million and 2% for controllers or processors of major importance. s. 48

Source

s. 34 in the Data Protection Act

A controller must notify the Commission within 72 hours of becoming aware of a breach likely to risk individuals’ rights and freedoms. For a likely high risk, immediately inform affected people in clear language with protective advice. Where direct communication is infeasible or disproportionate, section 40 permits suitable public communication. Controllers and processors must record all personal data breaches.

When

Within 72 hours of becoming aware of the breach

Possible consequence

After investigation, the Commission may order remedies, compensation for injury, loss or harm, an account of profits, or a penalty. The penalty ceiling is the greater of ₦2 million and 2% of the preceding financial year’s annual gross revenue, or the greater of ₦10 million and 2% for controllers or processors of major importance. s. 48

Source

s. 40 in the Data Protection Act

Controllers and processors designated as being of major importance must register, subject to applicable exemptions. Section 32 expressly requires a controller of major importance to designate an expert DPO. NDPC GAID 2025 and its registration guidance add classification and implementation requirements. Organisation size alone does not determine the category.

When

Section 44 requires registration within six months after the Act commenced or on becoming a controller or processor of major importance. Follow the applicable NDPC designation and registration guidance; do not assume a new six-month grace period.

Possible consequence

Up to ₦10 million or 2% of last year's gross revenue, whichever is higher, plus compensation, after a Commission investigation. s. 48(3)–(4)

Source

ss. 32 and 44; NDPC GAID 2025, arts. 8–12 and Schedule 7 in the Data Protection Act