FG cuts interest on late tax payments
…New rate takes effect October 1…Applies to FG, states, FCT tax authorities By Emma Ujah, Abuja Bureau Chief ABUJA — The Federal Government has reduced the interest rate payable by taxpayers for late settlement of their…
The new rate pegs interest on overdue naira tax payments at one percentage point above the Monetary Policy Rate (MPR), down from the previous spread, and takes effect from October 1. It applies across federal, state and FCT tax authorities, meaning the change affects how much penalty interest taxpayers owe nationwide, not just at the federal level.
Because the interest rate is tied to the MPR rather than fixed, the actual amount owed by late payers will move whenever the Central Bank adjusts its benchmark rate — linking tax penalties to broader monetary policy.