An economist, financial expert and tax practitioner, Dr. Ernest Abegbe, has formally called on the nation’s tax authorities, including the Nigeria Revenue Service (NRS), to introduce a temporary Late Returns Penalty (LRP) and interest waiver window to enable companies regularise outstanding filings and payments.
Abegbe’s call follows Section 66 of the Nigeria Tax Administration Act 2025, and ongoing reforms aimed at deepening compliance and broadening the national tax base.
He noted that although many businesses have shown willingness to comply with statutory obligations, accumulated penalties and interest – particularly those generated under automated tax platforms such as Taxpromax – have posed financial and operational constraints for companies seeking to clear backlogs.
“The current reform climate offers a rare opportunity to reset the compliance landscape,” he said. “However, legacy penalties and accrued interest discourage voluntary disclosure and timely settlement of outstanding liabilities.”
According Dr Abegbe, a structured and time-bound waiver window limited to LRP and interest only, without compromising the principal tax due would deliver multiple benefits: increased voluntary compliance, clearance of backlog filings by thousands of companies, increase revenue inflows, improved long-term tax culture and trust, and reduced enforcement and litigation costs.This balances government revenue interests with practical compliance realities faced by businesses.
“This is not a request for tax forgiveness,” he clarified. “It is a strategic compliance enhancement measure designed to accelerate revenue collection while fostering goodwill between taxpayers and the tax authority.”
He reaffirmed his commitment to constructive engagement among policymakers, regulators and the private sector to ensure that ongoing tax reforms achieve fairness, efficiency and sustainability.
Dr. Ernest Abegbe, FCA, FCTI, FIMC, CFAN
