How FG Plans to Use Access, Zenith, Opay, Moniepoint, Others to Recover Tax Debt in 2026
- Nigeria tightens tax framework to boost revenue and reduce leakages
- ax debt includes unpaid taxes, under-assessment, and erroneous refunds
- Technology plays a crucial role in improving tax compliance by linking systems with financial institutions
Nigeria’s tax framework is tightening as the government looks to boost revenue and reduce leakages.
At the centre of the renewed enforcement drive is a clearer definition of what qualifies as tax debt, how it can be recovered, and the expanding role of technology in tracking liabilities.
Source: Facebook
With ambitious revenue targets set for 2026, taxpayers are under closer scrutiny than ever before.
What the law recognises as tax debt
The Tax Act defines tax debt in broad terms, extending beyond simple non-payment.
Taxes that remain unpaid 30 days after they fall due automatically qualify as tax debt.
In addition, where a taxpayer fails to pay assessed tax, along with applicable penalties and interest, after the expiration of a formal notice period, the outstanding sum becomes recoverable debt.
The definition also captures cases of under-assessment. Where tax authorities later determine that a taxpayer paid less than required, the difference becomes an enforceable liability once demand is made.
Similarly, tax reliefs or refunds paid in error are treated as tax debt, with recipients legally obliged to return such funds.
Obligations of affected taxpayers
Taxpayers who were under-assessed are expected to settle the shortfall immediately upon demand.
There is no allowance for delay once the discrepancy has been identified and communicated. For those who received repayments or reliefs in error, the law is equally clear.
Such funds must be returned, regardless of whether the error originated from the taxpayer or the tax authority.
Failure to comply exposes the taxpayer to recovery actions, including enforcement measures permitted under existing tax laws. This reinforces the importance of accurate filings and prompt responses to official notices.
When third parties can be used for recovery
One of the more notable provisions is the ability of tax authorities to assign debt recovery to third parties.
This, however, is not automatic. The law requires that all conventional recovery steps be exhausted first.
These include issuing formal notices, making payment demands, and pursuing available enforcement options.
Only after these steps have failed can a debt be assigned to a third party, and even then, certain conditions must be met.
The debt must be of significant value and must have remained outstanding for a period considered appropriate by the authority.
This is intended to ensure that third-party recovery is reserved for serious and persistent cases.
Notification and oversight provisions
Taxpayers affected by third-party recovery arrangements must be notified in writing.
The notice is expected to clearly state that recovery has been assigned and identify the third party responsible for the process. Importantly, the tax authority retains the right to revoke the assignment at any time and resume recovery directly.
This provision gives authorities flexibility while offering taxpayers clarity on who is handling their case.
However, it also places a premium on transparency to avoid abuse or overreach.
Time limits and legal exceptions
The law sets a six-year limitation period for recovering tax debts arising from under-assessment or erroneous repayment. After this period, recovery is generally barred.
An exception applies where the under-assessment or erroneous repayment resulted from false statements or untrue documents.
In such cases, the limitation does not apply, allowing authorities to pursue recovery beyond six years.
Revenue targets and role of technology
Nigeria plans to generate at least ₦17.85 trillion in tax and customs revenue in 2026. Achieving this target depends heavily on technology and data integration.
The National Revenue Service plans to link its systems with transaction-heavy institutions such as the Nigeria Inter-Bank Settlement System, giving it deeper visibility into financial flows.
Source: Facebook
As bank accounts become increasingly tied to tax identification numbers, opportunities for evasion are shrinking. Enforcement is moving closer to where revenue is actually held.
Concerns around safeguards
While the framework reflects global best practices, it remains largely silent on safeguards.
There is limited clarity on how third-party recovery agents will be supervised, restrained, or challenged by taxpayers, according to a report by TechCabal.
As enforcement intensifies, these unanswered questions may shape future debates around taxpayer rights and regulatory balance.
For now, the message is clear. Tax compliance is no longer optional, and the cost of ignoring obligations is rising fast.
Questions, answers you must know about new tax laws
Legit.ng earlier reported that Nigeria’s new tax law had taken effect, reshaping how individuals and businesses register, file, and pay taxes.
This prompted experts at VFD Microfinance to provide a comprehensive question-and-answer guide, explaining what has changed, who is affected, and what taxpayers should expect in the months ahead.
Source: Legit.ng
