A company income tax return that misses its six-month deadline does not attract a vague warning. The cost is written into the law as a fixed figure.
The penalty for the first month
Miss your filing deadline, under the Nigeria Tax Administration Act 2025, and the first month costs ₦100,000. This applies under section 101 of the Nigeria Tax Administration Act 2025, whether or not any tax is actually due for the year.
Every taxable person must file a return each year, even if no tax is due, which is exactly why a nil return still carries this risk.
The penalty for each month after that
The cost keeps climbing. Every month the return stays outstanding after the first adds ₦50,000.
A quick example
A company with a 30 June deadline, for example, that files on 15 September, is three months late: the first month at ₦100,000, then two further months at ₦50,000 each.
A separate penalty for paying late
Filing on time does not close the risk if the tax itself is paid late. That triggers its own 10% penalty on the amount outstanding, on top of the filing penalty if both happened.
Interest runs alongside that penalty. Daily, as simple interest, from the due date until the tax is paid, at a rate the Nigeria Revenue Service (NRS), formerly FIRS, publishes for naira-denominated tax, currently the CBN Monetary Policy Rate plus 1 percentage point.
Why a knowingly incomplete return is treated the same as a late one
Section 101 of the Nigeria Tax Administration Act 2025 treats a return that is knowingly incomplete or inaccurate the same way as one that was never filed at all.
Filing something you already know is wrong or missing pieces, rather than fixing it first, risks the same penalty as not filing at all. That is a stricter standard than it sounds, and worth remembering when a deadline is close.
Why instalments do not create extra room
Company income tax can be paid in one sum or across instalments, but every instalment still has to clear by the original filing deadline. Our piece on the filing deadline itself sets out how that option works.
An instalment plan that runs past the deadline is not a grace period. It is a late payment, with the same 10% penalty and interest as any other.
Common mistakes
- Waiting for final, audited figures before filing anything. A reasonable estimate filed on time beats an accurate return filed late.
- Assuming a nil-tax year removes the risk. The filing penalty is tied to the return, not the bill.
- Forgetting that filing and paying are judged separately. A company can file on time and still face a late-payment penalty if the cash does not follow by the same date.
For the deadline this penalty structure protects, read the CIT filing deadline and self-assessment. For the wider law behind both, see the Nigeria Tax Administration Act explained, and keep your own dates on the compliance deadline calendar.