The Federal Government has introduced a new tax administration order reducing the interest rate charged on late payment of taxes.

The Nigeria Tax Administration Order 2026, signed by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, will take effect from October 1, 2026.

The Order, issued under Section 65 of the Nigeria Tax Administration Act, 2025, links interest on late tax payments more closely to prevailing market rates.

What the New Order Says

For taxes payable in naira, interest will be charged at the Central Bank of Nigeria’s Monetary Policy Rate (MPR) plus one percentage point.

This represents a reduction from the previous five-percentage-point spread. However, the applicable rate will not be lower than the yield on 364-day Treasury Bills.

For taxes payable in foreign currency, the interest rate will be based on the Secured Overnight Financing Rate (SOFR) plus six percentage points.

The Nigeria Revenue Service (NRS) is required to publish the applicable rates on its website by the third business day of every month.

Explaining the policy, Oyedele said the new system was designed to ensure that delaying tax payments would not become a cheaper source of credit than borrowing from the market.

According to him, the new framework will also provide taxpayers with greater certainty because the applicable rates will be published monthly and applied uniformly.

New Rates Apply From October 1

The new rates will apply to interest arising from October 1, 2026, including interest on taxes that became due before that date.

However, interest that arose before October 1 will remain governed by the rules applicable at the time.

The new Order also supersedes the 2017 notice on interest on unpaid taxes and other earlier notices on the subject.

The 10 per cent penalty for late payment under Section 65 of the Nigeria Tax Administration Act remains unchanged.

Tax authorities may also waive interest or penalties where good cause is established, as provided under Section 66 of the Act.

The minister urged taxpayers to file their returns and pay their taxes on time, while those with outstanding liabilities were advised to settle them promptly or engage the relevant tax authority.

Nigeria’s headline inflation rate eased marginally to 15.39 per cent in August 2026, from 15.43 per cent in July, according to the latest Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS) on Tuesday.

The latest figure represents a 0.04 percentage-point decline month-on-month, indicating a slight moderation in the pace of increase in the general price level.

The NBS also reported a significant slowdown in the month-on-month inflation rate, which fell to 0.71 per cent in August, compared with 1.57 per cent in July. This represents a decline of 0.86 percentage points.

According to the statistics agency, the development means that the average prices of goods and services increased at a slower pace in August than they did in July.

Food inflation also recorded a substantial moderation, dropping to 19.57 per cent year-on-year in August 2026, compared with 25.30 per cent recorded in August 2025.

On a month-on-month basis, food inflation declined sharply to 1.02 per cent in August, from 5.56 per cent in July, representing a 4.55 percentage-point reduction.

The NBS attributed the moderation in food inflation largely to changes in the average prices of several food items, including palm oil, carrots, pepper, onions, cassava flour, beef, yam flour, water yam, melon (egusi), fresh ginger, fresh fish, Irish potatoes, wheat grain, frozen chicken and turkey meat, among others.

At the state level, Adamawa recorded the highest year-on-year food inflation rate at 38.85 per cent, followed by Zamfara at 37.96 per cent and Bayelsa at 36.20 per cent.

The lowest year-on-year food inflation rates were recorded in Borno at -4.04 per cent, Jigawa at -0.23 per cent, and Kebbi at 3.47 per cent.

On a month-on-month basis, Katsina recorded the highest food inflation rate at 9.48 per cent, followed by Rivers at 8.86 per cent and Osun at 8.32 per cent.

Meanwhile, the slowest month-on-month food inflation rates were recorded in Taraba at -12.42 per cent, Borno at -12.15 per cent, and Bauchi at -8.88 per cent.

The latest NBS figures point to a broad moderation in the pace of price increases, particularly in the food sector, although inflation remains a major economic concern for households and businesses across the country.

President Bola Tinubu has assured local and foreign investors that Nigeria remains open for business, saying his administration is working to create a more predictable, competitive and investment-friendly environment.

Tinubu spoke on Monday in Abuja at the 75th anniversary celebration of the Nigerian Bottling Company Limited (NBC), where he was represented by the Secretary to the Government of the Federation, Senator George Akume.

The President said the Federal Government was aware of the challenges facing businesses and was addressing them through economic reforms under the Renewed Hope Agenda.

“Our message to investors, both Nigerian and international, is clear: Nigeria is open for business, and we are working to make the business environment more predictable, more competitive and more supportive of investment,” he said.

He identified reliable electricity, infrastructure, clear regulations, efficient ports and logistics, access to foreign exchange and a business-friendly tax system as critical to attracting and retaining investments.

Tinubu said the administration’s economic reforms were aimed at building a more productive economy, reducing dependence on imports, expanding local manufacturing and creating more jobs.

He also welcomed the Coca-Cola System’s planned $1 billion investment in Nigeria over five years, describing it as a vote of confidence in the Nigerian economy.

The President said the government was interested not only in the amount of investment coming into the country but also in its impact on job creation, skills development, local sourcing, technology transfer and the growth of Nigerian businesses.

He urged investors to see Nigeria not merely as a large consumer market but as a production base from which they could serve African and global markets.

Tinubu also commended NBC for its continued investment in production capacity, including new production lines at Asejire in Oyo State and Challawa in Kano State.

He called for greater local content in manufacturing and urged businesses to develop Nigerian suppliers, train young people in technical skills and gradually replace imports with competitively produced Nigerian goods.

The President stressed that government alone could not transform the economy, urging the private sector to invest, innovate, take risks and create jobs.

He also highlighted the importance of human capital development, commending NBC’s Supply Chain Academy, which he said had trained more than 1,400 young people since its establishment in 1996.

Tinubu acknowledged the difficulties caused by the ongoing economic reforms but said Nigeria’s longstanding structural challenges could no longer be ignored.

He assured investors willing to make long-term commitments to Nigeria of the government’s support, particularly those prepared to manufacture locally, develop Nigerian talent, strengthen supply chains and contribute to host communities.

Earlier, the President congratulated NBC on its 75th anniversary, describing its growth from a Lagos-based company established in 1951 into a nationwide enterprise as an example of the opportunities available through long-term investment in Nigeria.

He said the Coca-Cola System generated an estimated $1 billion in value-added economic activity in Nigeria in 2024, supported more than 160,000 livelihoods and purchased about $601 million worth of goods and services from Nigerian suppliers.

Tinubu urged NBC and the Coca-Cola System to sustain their investments, deepen local supply networks and continue developing Nigerian talent as the country works towards a more productive and globally competitive economy.