Nigeria’s new tax framework is designed to move money into government coffers faster. But contrary to popular belief, the process does not begin with payment. It begins with self-assessment.
Under the Nigeria Tax Administration Act (NTAA) 2025, once a tax authority issues an assessment, a taxpayer has 30 days to either pay or formally object. Miss that window, and the assessment becomes legally binding.
This 30-day rule is central to Nigeria’s plan to significantly increase tax and customs revenue by 2026. By forcing taxpayers to either challenge an assessment quickly or accept it as final, the law shifts the burden of accuracy from the state to the individual — accelerating how revenue flows into government accounts.
Consider a freelancer earning between ₦4 million and ₦6 million monthly. If the tax authority assesses their income above what they actually earned, and they fail to object within 30 days, that inflated figure becomes enforceable by law. Payment becomes mandatory, with penalties applying for delays.
For freelancers, remote workers, consultants, creatives, and digital entrepreneurs — many of whom will enter the tax system for the first time in 2026 — this deadline may matter more than the tax rate itself.
Once an assessment is issued, silence equals acceptance.
Nigeria aims to raise its tax-to-GDP ratio from roughly 10% to about 18% by 2027. The strategy relies heavily on expanding the tax base — bringing more informal and self-employed workers into the system.
States are already aligning with the new framework, and the Nigeria Revenue Service (NRS) is operating as the central coordinating authority.
Globally, objection timelines differ widely. Taxpayers have 80 days in South Africa, 90 days in Canada, up to four years in Australia, and 30 days in the United Kingdom. Nigeria’s approach mirrors the strictest end of that spectrum.
Unlike salaried employees whose taxes are deducted before salary payment, self-employed individuals must assess themselves.
The law requires taxable persons to voluntarily:
Once a return is filed, the tax authority may:
If a taxpayer fails to file entirely, the authority can determine tax payable to the best of its judgment.
While this gives tax authorities broad discretion, the law balances that power with a 30-day objection window.
Once an assessment is served, the taxpayer has 30 days to challenge it.
A valid objection must be detailed and precise. It must clearly state:
This stage is evidence-driven and often requires professional guidance.
After an objection is filed, the tax authority may request documents, summon witnesses, or demand further clarification. If both sides agree, a revised assessment is issued with a fresh notice period.
If no agreement is reached, the taxpayer can appeal. Importantly, if the tax authority fails to respond to a valid objection within 90 days, the objection automatically succeeds.
An assessment becomes legally binding when:
Failure to pay attracts penalties, including at least 10% interest on the tax owed. Tax authorities may also appoint a taxpayer’s bank as a recovery agent.
Assessment lists are maintained with details such as:
Taxes are not charged only on what you earn, but on what you can prove.
For millions of first-time taxpayers in 2026, the difference between a fair assessment and an inflated one will come down to documentation: bank statements, invoices, contracts, receipts, and proper records.
In Nigeria’s new tax era, paper trails protect wallets.