Section 123 Nigeria Tax Administration Act 2025

Section 123 of the Nigeria Tax Administration Act 2025 is about Default in payments of mineral royalties. It provides as follows:

(1) Where any mineral royalty due and payable under this Act remains unpaid for 30 days after the due date, it shall be a debt and –
(a) a penalty of 10% of the amount of the royalty payable shall be added to the royalty due ;

(b) in the case of foreign currency transactions, the royalty due shall incur interest at the prevailing SOFR or any other successor rate plus 10%;
and
(c) in case of Naira transactions, the royalty due shall incur interest at the prevailing Central Bank of Nigeria Monetary Policy Rate.

(2) For the purpose of this section, the interest shall be compound interest and shall apply to all tax debts that remain unpaid as at the commencement of
this Act.

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