Tax fever builds as Nigerians face low awareness, harsh penalties

Nigeria’s push to widen its tax net is colliding with low public awareness and steep penalties, as millions of citizens risk fines after missing the March 31 filing deadline under sweeping new tax reforms.

While the federal deadline for filing 2025 individual income tax returns remains unchanged, only a handful of states – Lagos, the Federal Capital Territory (FCT), and Anambra – have moved to ease the pressure, extending deadlines amid growing concern over compliance gaps.

The Federal Capital Territory Internal Revenue Service (FCT-IRS) said it has shifted the deadline by one month to April 30, 2026. In a statement on Tuesday, acting executive chairman Michael Ango said the extension is designed to “give taxpayers additional time to file accurate returns and improve overall compliance.”

“Individuals are therefore encouraged to file their returns promptly through the designated FCT-IRS tax portal,” Ango said, urging residents to update personal details including their national identification number to avoid delays.

Similar extensions have been announced elsewhere. Lagos moved its deadline to April 14, while Anambra granted taxpayers a 30-day extension to April 30. The Anambra State Internal Revenue Service said the move would allow individuals “ample time to accurately complete and submit their returns” in line with the Nigeria Tax Administration Act 2025.

Despite these adjustments, much of the country remains exposed to penalties that critics say are disproportionately harsh. Under the new law, failure to file attracts an initial fine of ₦100,000 in the first month, followed by ₦50,000 for each additional month – amounts that exceed Nigeria’s minimum wage and raise concerns about fairness and enforcement.

The reforms are part of President Bola Tinubu’s broader effort to expand Nigeria’s tax base and boost non-oil revenues. But for many citizens, the transition has been abrupt.

Across social media and civil society groups, Nigerians have questioned the lack of public education around the new requirements, with many saying they were unaware of filing obligations or how to navigate newly introduced digital tax platforms.

Tax authorities have continued to stress compliance. Ango described voluntary tax payment as “a civic duty and a key contribution to national development,” while also highlighting a shift toward electronic filing systems.

Yet the uneven response across states – and the scramble to extend deadlines – underscores deeper structural challenges in Nigeria’s tax system: weak awareness, limited digital access, and trust deficits between citizens and government.

For now, the extensions offer temporary relief in select regions. But with penalties looming nationwide, the gap between policy ambition and public readiness is becoming increasingly difficult to ignore.