N50k Fines & 3-Year Jail Time
The Big Picture: January 1, 2026 isn’t just the start of a new year,it’s when Nigeria’s sweeping Nigerian Tax Act, 2025 officially kicks in, bringing the most stringent compliance rules the country has seen in decades. The Federal Inland Revenue Service (FIRS) says the tougher stance will "promote equity and bridge the infrastructure gap," Punch reports.
The Details:
* Miss the registration deadline? That’s ₦50,000 for month one and ₦25,000 for every month after.
* Skip your VAT return? Prepare for ₦100,000 upfront and ₦50,000 monthly until you file.
* Block FIRS tech access? A cool ₦1 million on day one and ₦10,000 for each extra day.
* The Act even doubles down on tech adoption,refusing a fiscalisation system triggers ₦200,000 plus 100% of tax due.
Failure to pay up could cost offenders up to three years behind bars. FIRS boss Zacch Adedeji insists the menu of penalties will "strengthen compliance and widen the base",a nod to the administration’s hunt for fresh revenue streams.
Why It Matters / What They’re Saying: The reaction was swift. Tax professionals warn that while deterrence is good, the sheer volume of new rules risks "confusion and anxiety," as Business a.m. notes. With four separate tax laws landing the same day, firms are scrambling to decode what applies to whom, and how much it will cost.
Around the Tax World
• Import Duty Uproar: A last-minute 15% levy on petrol and diesel set for December has downstream operators predicting sharper pump prices (Business a.m.).
• Sin Taxes, Reimagined: Abuja plans to tax tobacco, alcohol, and sugary drinks directly at the till, not the manufacturer, Taiwo Oyedele told Science Nigeria.
• CGT Triples: Private-equity firms warn the jump from 10% to 30% capital gains tax could chill dollar inflows, per BusinessDay.
• Tax Tech Boost: Startup Smoothwave rolled out the Taxizi app to let freelancers and SMEs auto-compute PAYE, VAT, and more (Punch).
• TIN or Bust: FIRS reminded banks that taxable customers must present a Tax Identification Number to open or run accounts (MSN).
• Lagos Shines: Ayodele Subair bagged “Board Chair of the Year” as LIRS was crowned top revenue agency at the 2025 Peak Performer Awards (Nigeria Communications Week).
Tax Stat of the Day
30% , the new capital-gains tax rate set in the NTA, up from 10%, sparking fears of slower foreign investment (BusinessDay).
Looking Ahead
All eyes are now on January 1, 2026, when the raft of new laws, and their hefty penalties, become enforceable. Expect a flurry of guidance notes as businesses race to stay on the right side of FIRS.
Prepared by MyTax - mytax.com.ng