The Financial Reporting Council (FRC) of Nigeria has affirmed that the inclusion of not-for-profit Non Governmental Organisations(NGOs) in the National Code of Corporate Governance (NCCG) in the country is not for taxation purposes.
Speaking at the public hearing in Lagos on the NCCG for NGOs over the weekend, the Chairman of ... Read More
No one organisation exists in a vacuum, rather they exist and interact with other similar and different organisation within the same business and regulatory environment. This relationship triggered by the fallout of the global financial crisis has brought the importance of ... Read More
Corporate Risk Management; Nigerian Perspective
Nigeria is not exempted from the current volatility, uncertainty, complexity and ambiguity in the world today and the importance of risk management cannot be over emphasized especially with the consequences of deficit economy that we are currently ... Read More
Oil revenues? Nope, not for today’s fast emerging African entrepreneurs and millionaires! Are you wondering in which sectors you will find the most profitable business opportunities in Africa? Then this article is for you!
Last year, there were several inspiring success stories of African entrepreneurs who ... Read More
For the many individuals who have ever thought about starting their own business, chances are there was one thing that stopped them: the risks.
Many people think about starting their own business only to be turned off by the projected risk, time ... Read More
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Why Excel isn’t a long term solution
Excel can do a large number of tasks, is easily available and is very widely used in the world of business. And it would be wrong not to not acknowledge this up front. However, ... Read More
Ensuring respect for risk
Most executives understand the need for controls that alert them to trends and behaviors they should monitor, the better to mobilize in response to an evolving risk situation. And while managers are unlikely to approve of skirting the ... Read More
Why Your Business Needs An Accounting Software
Research has shown that over 98 percent of Nigeria’s Micro and small scale businesses do not have formal or what we may call a standard book-keeping culture. While most of ... Read More
Corporate governance for NGOs not for tax purposes, says FRC
The transition to the Nigeria Tax Act (NTA) 2025 is now in its active delivery stage. As of MAY 2026, the "grace period" of the new regime is ending, and the Nigeria Revenue Service (NRS) has begun active enforcement. Understanding the specific windows for compliance and the penalties for missing them is new to avoiding financial sanctions. It is worth noting that NTA 2025 is not newly introduced. Compliance window or offenses instead the framework is designed to bring absolute clarity to taxpayers.
Timeline of Enforcement The transition followed a phased "Activation" model: June 26, 2025: President Tinubu signed the four primary Reform Bills. The Nigeria Revenue Service Act, Nigeria Tax Administration Act, Nigeria Tax Act and Joint Revenue Board Act became legally effective on this date to allow for the structural rebranding of the FIRS to the NRS. January 1, 2026: The Commencement Date. All new tax rates (including the 0% rate for small businesses 30% for large companies and the 4% Development Levy) and administrative procedures became mandatory. April - June 2026: The First Filing Cycle. Companies with a December 31 year-end are currently navigating their first full filing period under the unified NTA 2025 rules. January 1, 2028: The sunset date for certain Free Trade Zone exemptions. After this date, entities in these zones will be fully liable for tax on sales to the customs territory.
Timelines for Filing and Extensions The Nigeria Tax Administration Act (NTAA) 2025 has harmonized filing deadlines across the country. Standard Deadlines Company Income Tax (CIT): Must be filed within 6 months after the end of the company's accounting year. VAT & Withholding Tax: Returns must be submitted on or before the 21st day of the following month (for VAT) and 30th day (for WHT) of the following month. PAYE: Must be remitted on or before 10th day of the following month. Extensions The NRS may grant an extension for filing if a taxpayer applies before the deadline and provides a valid reason (e.g., system outages or serious technical difficulties). Note: An extension of the filing date does not automatically extend the payment date . You may still be required to make a "provisional payment" to avoid interest charges while the extension is active.
Enforcement of the Act: “New Teeth" The NRS has significantly more autonomy than the previous FIRS. They are now empowered to enforce compliance through automated and digital means. Digital Focalization The NRS is deploying a "single window" digital platform. Enforcement is now largely automated: Automatic Flags: The system automatically flags businesses that have a turnover above ₦100M (tracked via bank records) but are still claiming the 0% "Small Company" tax rate. Technology Access: Refusing to grant the NRS access to your business's digital accounting systems for an audit carries a massive penalty of ₦1,000,000 for the first day and ₦10,000 for every day the refusal continues. Modern Sanctions (The "Cost of Failure") The 2026 penalty regime is designed to make non-compliance more expensive than the tax itself: Offense | Penalty (2026 Rates) Failure to Register for Tax ₦50,000 first month; ₦25,000 each subsequent month. Failure to File Returns ₦100,000 first month; ₦50,000 each subsequent month. Late Remittance of WHT Original tax + 10% penalty + Interest at CBN rate. False Refund Claims 100% of the amount claimed + interest. Obstruction of Officers ₦1,000,000 administrative penalty + potential imprisonment. Strategic Advice: With the ₦100,000 initial penalty for simple filing defaults, the NRS is signaling that "silence" is no longer an option. Even for small businesses with 0% tax liability, filing a "Nil Return" is the only way to prove compliance and avoid automated fine
