Late NSITF contributions cost more than the contribution itself. NSITF's FAQ lists a percentage charge for paying late, and separate fines for default.
The late payment charge
NSITF's FAQ lists a penalty of 10% of the unpaid assessment for employers who do not pay when due. It is charged on the unpaid assessment, so the bill grows with the size of what was missed.
Contributions are due within the first two working days of each month. Miss that window and you are on the wrong side of the rule.
The charge is set against the unpaid assessment, not against your whole payroll. Ask NSITF for a statement of what it says you owe, so you know the exact base.
Fines for a company that defaults
Apart from the percentage charge, the FAQ says a body corporate faces a fine of not less than ₦1,000,000, on conviction. That is a floor, not a ceiling.
Read the wording as NSITF gives it. Do not assume a smaller fine applies because the missed amount was small.
This page states what NSITF's FAQ lists. It does not predict what will happen in your case, and it is not legal advice.
Directors and officers can be caught too
NSITF's FAQ says each director, manager or officer of a defaulting company is also deemed to have committed an offence. The listed penalty is up to one year in prison or a ₦100,000 fine, or both.
For an individual employer, the FAQ words the fine as not less than ₦100,000. The two wordings differ, so read the FAQ itself before you rely on either.
That means the risk does not sit with the company alone. For how this applies to you, ask a lawyer.
How this touches a compliance certificate
Tender packs ask for an NSITF compliance certificate. The Public Procurement Act 2007 expects every bidder to have paid all taxes, pensions and social security contributions due, so clear what you owe before a bid.
This article cannot say how arrears or penalties affect a certificate application. Ask NSITF what it needs from you. For what an application involves, see the NSITF compliance certificate page.
Getting current
If you are behind, work through this list:
- Log in to the employer portal at ecsonline.nsitf.gov.ng.
- Find out what NSITF says is unpaid against your business.
- Pay through the portal, where NSITF takes contributions, compliance certificate fees and inspection liabilities.
- Keep every receipt.
- Put the monthly due date in your payroll calendar, next to salary day.
Do this before a tender notice arrives, not after.
If you cannot pay in full, do not go silent. Contact NSITF and ask what it will accept. Keep a written note of who you spoke to, and when.
Common mistakes
- Treating the percentage charge as the whole cost.
- Assuming only the company is exposed, when the FAQ names directors and officers too.
- Paying the contribution but ignoring the penalty attached to it.
- Waiting for a tender to force the clean-up.
Pension has its own late penalty, and it works differently. See pension remittance deadline and late penalty. The tender compliance hub covers the rest of the series.