Section 129 Nigeria Tax Administration Act 2025

Section 129 of the Nigeria Tax Administration Act 2025 is about Late payment of tax. It provides as follows:

(1) Where any tax, royalty or remittance due from a company involved or engaged in upstream petroleum operations is not paid on the due date, it shall be a debt and –

(a) a sum equal to 10% of the amount payable shall be added to the tax, royalty or remittance due ;

(b) in the case of a foreign currency transaction, the tax, royalty or remittance due shall incur interest at the prevailing SOFR or any other successor rate plus 10% ; or
(c) in the case of transactions in Naira, the tax, royalty or remittance due shall incur interest at 2% above the prevailing Central Bank Monetary Policy Rate.

(b) 2,000,000 or US Dollar equivalent for each day in which the failure
continues.

(3) Notwithstanding the provisions of subsections (1) and (2), the Service may, with the assistance of the Commission or Authority –
(a) distrain the licensee or lessee of its oil well, crude oil, condensates, natural gas or natural gas liquid, petroleum products, engines, machinery, tools, implements or other effects ; or

(b) cancel, revoke, seize, distrain or dispose the licenses or rights of the holder.

(4) For the purpose of this section, the interest shall be compound interest and shall apply to all tax debts that remain unpaid as at the commencement of this Act.

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