30 Days or Pay: New Tax Law Puts Nigerians on the Clock as Government Tightens Revenue Net
- Nigeria's NTAA 2025 imposes a strict 30-day deadline for tax assessment objections
- Self-assessment shifts burden of tax accuracy to individuals, increasing pressure on first-time taxpayers
- Inadequate paperwork could lead to binding tax assessments and substantial penalties for freelancers
Nigeria’s new tax regime is not just about higher compliance. It is about speed.
Under the Nigeria Tax Administration Act (NTAA) 2025, once a tax authority issues an assessment, a taxpayer has just 30 days to either pay up or formally object.
Source: Twitter
Miss that window and the bill becomes binding, even if the figures are wrong.
The rule is a core pillar of the government’s revenue drive as it targets at least ₦17.85 trillion ($12.59 billion) in tax and customs collections in 2026.
By forcing taxpayers to act quickly, the law shifts the burden of accuracy away from the state and onto individuals, accelerating how money moves from the economy into government coffers.
Why the 30-day rule matters
For many Nigerians, especially freelancers, remote workers, and content creators, the deadline may matter more than the tax rate itself.
From 2026, millions in this group will be paying income tax for the first time under stricter enforcement.
Consider a freelancer earning between ₦4 million and ₦6 million monthly.
If the tax authority issues an assessment higher than actual income and the taxpayer fails to object within 30 days, that inflated figure becomes final. Payment becomes mandatory, and penalties follow if the bill is ignored, according to a report by TechCabal.
Unlike salaried workers whose taxes are deducted before salaries hit their accounts, self-employed Nigerians must actively engage the system. Silence now carries a price.
A system built around self-assessment
At the heart of the NTAA is self-assessment. Taxpayers are required to voluntarily declare income, file returns, and pay taxes due.
The tax authority then has three options: accept the return as filed; accept it but issue an additional assessment; or reject it entirely and raise its own assessment based on its best judgment.
If a taxpayer fails to file at all, the authority can estimate the tax payable using available information. While this gives tax authorities wide discretion, the law balances that power with a formal objection process, anchored on the 30-day window.
How Nigeria compares globally
Nigeria’s objection timeline is short by international standards. Taxpayers in South Africa have 80 days to object. Canada allows 90 days. Australia offers up to four years, while the United Kingdom also operates a 30-day rule.
The difference is context. In Nigeria, where informal work is widespread and record-keeping is uneven, the tight deadline raises the stakes for first-time taxpayers still learning the system.
What makes a valid objection
An objection must be detailed and precise. It is not enough to say an assessment is wrong.
The taxpayer must clearly state the disputed issues and the monetary amounts involved, propose specific amendments, justify those changes, and declare the income and tax they admit as payable, if any.
Supporting documents matter. Bank statements, invoices, contracts, and receipts often make the difference between a revised assessment and a rejected objection. In practice, this stage is evidence-heavy and often requires professional tax advice.
Once an objection is submitted, the tax authority can request additional documents, summon witnesses, or seek further clarification. Where both sides agree, a revised assessment is issued, usually with a fresh 30-day payment period.
Appeals and automatic wins
If disagreement persists after an objection, the taxpayer can appeal. Crucially, the tax authority has 90 days to respond to a valid objection.
If it fails to do so, the objection automatically succeeds, a rare but powerful protection for taxpayers.
When a tax bill becomes final
An assessment becomes legally binding when no valid objection or appeal is filed within 30 days, when the taxpayer accepts the assessed figures, or when the amount is confirmed after objection or appeal.
Failure to pay attracts penalties, including interest of at least 10 per cent on the tax owed.
The tax authority can also appoint a taxpayer’s bank as a recovery agent.
Source: Twitter
Assessment lists, including names, addresses, profits, and taxes payable, must be maintained by the authorities.
For millions entering the tax net in 2026, one lesson is clear. Taxes are no longer just about what you earn, but what you can prove.
In the new system, paperwork is protected, and the clock starts ticking the moment an assessment lands.
Union Bank explains who pays nothing
Legit.ng earlier reported that Nigeria’s new tax laws officially took effect on January 1, 2026, marking the most far-reaching overhaul of the country’s tax framework in decades.
In a detailed message to customers, Union Bank outlined how the reforms will affect salary earners, investors, and business owners, urging Nigerians to review their finances and compliance status immediately.
The reforms introduce wide-ranging changes to income tax, capital gains, company taxation, VAT, and compliance penalties, with winners and losers clearly emerging.
Source: Legit.ng
