What Happens When You Don’t File Tax in Nigeria

As of January 2026, the Nigeria Tax Administration Act (NTAA) 2025 is fully in effect. This means the new tax rules, compliance obligations, enforcement mechanisms, and penalties are no longer theoretical. They are now legally binding and actively enforced across Nigeria.

For individuals and businesses alike, the obligation to file tax in Nigeria has never been more critical. The NTAA 2025 modernizes Nigeria’s tax system, strengthens enforcement powers, and places stricter consequences on taxpayers who fail to comply.

If you do not file tax in Nigeria in 2026, you risk more than just late fees. Non-compliance can trigger mounting monetary penalties, interest charges, digital audits, enforcement actions, and in serious cases, criminal prosecution.

This comprehensive guide explains what happens when you fail to file tax in Nigeria under the NTAA 2025, the penalties you should expect, and the immediate steps you need to take to become compliant.

What It Means to File Tax in Nigeria in 2026

Under the NTAA 2025, filing tax in Nigeria goes beyond simply paying money to the government. It involves meeting specific registration, reporting, and declaration obligations, even if no tax is ultimately due.

Under the law, most taxable persons; both individuals and businesses are required to:

• Register for tax and obtain a Tax Identification Number (TIN)
• File tax returns as prescribed (such as Personal Income Tax, VAT returns, Company Income Tax returns)

Importantly, even if you believe you owe no tax, Nigerian tax authorities still require you to file a declaration of income. Failure to file at all is treated as a tax offence, regardless of whether tax is payable.

How to Obtain a Tax Identification Number (TIN) in Nigeria

A Tax Identification Number (TIN) is a unique number used to identify you as a taxpayer in Nigeria. You must have a TIN before you can file tax in Nigeria or submit any tax returns.

Steps to Register and Obtain Your TIN

1. Visit the Nigeria Revenue Service (NRS) Website
Go to the official NRS portal at:

2. Create an Account on the E-Filing Portal
Click on “Register” or “Create Account” and provide:

• Full name
• Email address
• Phone number
• A valid means of identification (National ID, International Passport, or Driver’s License)

You will also be required to set a username and password.

3. Submit Required Documentation

• Upload scanned copies of your identification document
• For businesses, submit company registration documents such as your CAC certificate

4. Complete Your Taxpayer Profile
Provide additional details including:

• Residential or business address
• Occupation or nature of business
• Applicable tax types (Personal Income Tax, Company Income Tax, VAT, PAYE, etc.)

5. Submit the Application
After completing all required fields, submit your registration for processing.

6. Receive Your TIN
Once approved, your TIN may be issued instantly or sent to your email within a few days. You can log in to your account to view and print your TIN certificate.

Important Note:
If you already have a TIN issued by the former Federal Inland Revenue Service (FIRS) or a State Internal Revenue Service, ensure it is updated and properly linked to the new NRS system.

How to File Tax in Nigeria Under the NTAA 2025

Once you have obtained your TIN, you are required to file tax returns that correspond to your income or business activities. Common tax returns include:

• Personal Income Tax (PIT): For individuals earning salaries, business income, or other taxable income
• Value Added Tax (VAT): For businesses that charge VAT on goods and services
• Company Income Tax (CIT): For incorporated companies
• Pay-As-You-Earn (PAYE): For employers deducting tax from employee salaries

Steps to File Your Tax Returns

1. Log in to the NRS E-Filing Portal
Access the portal using your registered username and password.

2. Select the Tax Type You Want to File
Choose the relevant tax category such as PIT, VAT, Company Income Tax, or PAYE.

3. Download the Relevant Tax Return Form
Most forms are pre-filled with your registered details but may require updates or additional disclosures.

4. Complete the Required Information

• For PIT: Declare all taxable income and allowable deductions
• For VAT: Report VAT collected and VAT paid on purchases
• For CIT: Provide financial statements, profits, expenses, and tax computations
• For PAYE: Submit employee salary details and tax deductions

5. Review and Validate Your Submission
Confirm that all information provided is accurate and complete.

6. Submit the Tax Return Electronically
File the return by clicking “Submit” on the portal.

7. Make Payment (If Tax Is Due)
Any outstanding tax should be paid using the approved electronic payment options. Retain your payment receipt.

8. Download the Acknowledgment Slip
This serves as official proof that you have successfully decided to file tax in Nigeria.

Penalties for Not Filing Tax in Nigeria

The NTAA 2025 introduces a strict penalty regime for failure to file tax returns.

If you fail to file tax in Nigeria, the penalties include:

• ₦100,000 fine for the first month of non-filing
• ₦50,000 for each subsequent month

These penalties accumulate monthly. For example, six months of non-filing can result in ₦350,000 in penalties alone, excluding the actual tax owed.

For many individuals and small businesses, these penalties often exceed the original tax liability, especially when delays persist.

In addition, the Nigeria Revenue Service now has enhanced powers to:

• Conduct digital audits
• Demand access to financial records
• Recover unpaid taxes
• Enforce compliance through legal action

Refusing digital audits or ignoring mandated e-filing requirements can attract daily fines. Serious offences such as deliberate tax evasion or submitting false returns may lead to criminal prosecution and possible jail terms.

What This Means for Individuals and Small Businesses

1. Individuals, including salaried employees, may still be required to file tax declarations depending on income level and applicable state regulations.
2. Small and medium-sized businesses are often required to file multiple returns, including VAT, Company Income Tax, PAYE, and withholding tax. Failure to comply with any of these obligations can trigger penalties and enforcement actions.

What to Do If You Have Not Filed Tax in Nigeria

If you have not yet complied, taking immediate action can help reduce penalties and prevent further enforcement.

Immediate steps to take:

• Register for tax or confirm your TIN through the Nigeria Revenue Service portal
• Gather all income and expense records for outstanding periods
• File all overdue tax returns as soon as possible
• Pay any outstanding taxes to reduce interest and penalties
• Engage a qualified tax professional if the process feels overwhelming
• Begin using the NRS electronic filing system consistently for future compliance.