An economist and tax consultant, Dr Ernest Abegbe, has appealed to Nigeria’s tax authorities to grant a temporary waiver on Late Returns Penalties and accumulated interest to enable companies to regularise outstanding tax filings and payments.
Speaking in an interview, Abegbe explained that the proposed waiver would complement ongoing tax reforms designed to strengthen compliance and broaden the country’s tax base.
He stated that the recommendation is supported by Section 66 of the Nigerian Tax Administration Act 2025.
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According to him, although many companies are prepared to fulfil their legal tax obligations, the buildup of penalties and interest — particularly those generated through automated tax systems — has placed heavy financial and operational pressure on businesses attempting to resolve outstanding filings.
He noted that the current reform environment presents an opportunity to reset the compliance framework, as existing penalties often discourage voluntary disclosure and prompt settlement of tax liabilities.
Abegbe suggested a clearly defined and time-bound waiver period that would apply strictly to penalties and interest, without affecting the principal tax owed.
He said such a measure would encourage voluntary compliance, help companies clear filing backlogs, increase government revenue, strengthen long-term tax culture and trust, and reduce enforcement and litigation expenses.
“This is not about cancelling taxes,” he clarified. “Rather, it is a strategic step to enhance compliance, speed up revenue collection, and build goodwill between taxpayers and the authorities.”
The tax expert added that the proposal would help balance government revenue goals with the practical challenges businesses face, while promoting fairness and sustainability within the evolving tax system.
He also reaffirmed his commitment to constructive collaboration among policymakers, regulators, and the private sector to ensure that ongoing tax reforms achieve efficiency and lasting stability.
New tax reform laws came into effect on January 1, 2026.
