FG announces lower interest rate for overdue taxes

The Federal Government has reduced the interest rate charged on late tax payments, with the new regime taking effect from October 1, 2026.

According to The Sun, Finance Minister Taiwo Oyedele issued the order under the Nigeria Tax Administration Act, 2025.

For naira-denominated taxes, interest will be charged at the Bank of Nigeria’s Monetary Policy Rate plus one percentage point, subject to a floor based on 364-day Treasury Bill yields.

Foreign-currency tax debts will attract the Secured Overnight Financing Rate plus six percentage points.

The rate will be published monthly by the Nigeria Revenue Service and calculated daily as simple interest.

The government said the framework aims to align late-payment costs with market rates while giving taxpayers certainty about liabilities.