By Kingsley Ani
Thursday, 24 September 2026, marked the unveiling of the Nigeria Revenue Service’s (NRS) new tagline, ‘Inspiring Trust, Sustaining Growth’, under Executive Chairman of NRS, Dr. Zacch Adedeji. The development comes as the federal government introduces a new framework for calculating interest on late tax payments from 1 October 2026.
DEVELOPMENT
The new NRS tagline emerged from weeks of deliberation and is intended to reflect the Service’s approach to taxpayer relations, revenue collection and national growth.
At the same time, the Minister of Finance and Coordinating Minister of the Economy, Dr. Taiwo Oyedele, issued the Nigeria Tax Administration (Interest on Late Payment of Tax) Order, 2026, under Section 65 of the Nigeria Tax Administration Act, 2025.
The order replaces the previous five-percentage-point spread with a market-linked formula. Interest on tax payable in naira will be charged at the Central Bank of Nigeria’s Monetary Policy Rate (MPR) plus one percentage point, subject to a floor based on the yield on 364-day Treasury Bills. Foreign-currency tax liabilities will attract secured overnight financing rate (SOFR) plus six percentage points.
DATA
The applicable rate will be determined monthly using the last business day of the preceding month and published by the NRS by the third business day of each month.
Interest will be calculated as simple interest daily, from the tax due date until payment. The framework applies uniformly to self-assessment taxpayers, the NRS and State and Federal Capital Territory Internal Revenue Services.
Oyedele said: “Tax that is due belongs to the public. When it is paid late, government may have to borrow to fill the gap, and the cost falls on everyone.”
SIGNIFICANCE
The new framework changes late-payment interest from a fixed five-percentage-point addition to a market-linked mechanism. This potentially gives taxpayers greater visibility over their liabilities while allowing the cost of delayed payment to move with prevailing monetary and fixed-income conditions.
Oyedele said that the framework would ensure that taxpayers would not find it cheaper to delay their tax obligations than to borrow from the market.
He stated: “Every taxpayer, whether dealing with the NRS or a State revenue service, will know the rate in advance, see it published every month, and be charged in the same way.”
The order does not change the ten percent penalty for late payment under Section 65. Tax authorities retain powers under Section 66 to waive penalty or interest where good cause is established.
NEXT MOVE
The new regime takes effect from 1 October 2026. It also applies to interest arising from that date on taxes that became due before 1 October, although interest accrued before then remains governed by the rules previously in force.
The federal government has urged taxpayers to file returns and settle liabilities on time or engage the relevant tax authority where outstanding obligations exist.
OUR LENS
The significance extends beyond the interest formula. The NRS’s ‘Inspiring Trust, Sustaining Growth’ message now meets a tax administration framework built around transparency, predictability and market-linked charges. The credibility of that proposition will increasingly depend on consistent publication, uniform application and taxpayer understanding across federal and sub-national revenue authorities.
Kingsley Ani is a journalist who has over the years been covering capital markets, corporate results, economic and public-interest developments with a focus on clear, factual reporting.
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