How to Avoid Tax Penalties in Nigeria: Your Complete Protection Guide

Introduction

Tunde opened his email one Tuesday morning to find a notice from FIRS: his company owed ₦7.2 million in penalties and interest on a ₦5 million tax liability. He'd filed the return—just four months late. "How did ₦5 million become ₦12.2 million?" he wondered, staring at the breakdown of accumulated penalties.

You're not alone if tax penalties feel like a minefield. Between Companies Income Tax, VAT, PAYE, and Withholding Tax obligations, each with different deadlines and penalty structures, Nigerian businesses face constant pressure to stay compliant. Miss one deadline, and penalties start accumulating immediately—often faster than you realize.