A tax expert has urged the Nigeria Revenue Service to introduce a temporary waiver on late return penalties and interest charges to encourage voluntary tax compliance across the country.

Dr. Ernest Abegbe, an economist and financial expert, made the appeal in response to ongoing tax reforms under Section 66 of the Nigeria Tax Administration Act 2025.

According to him, while many companies are willing to meet their tax obligations, accumulated penalties and interest — especially those generated through automated platforms such as Taxpromax — have created financial strain for businesses trying to regularise outstanding filings.

Dr. Abegbe says the current reform climate presents a unique opportunity for authorities to reset the compliance framework.

He explains that a structured and time-bound waiver, covering only Late Returns Penalties and interest — and not the principal tax owed — would encourage thousands of companies to clear backlogs.

He adds that such a measure could increase voluntary compliance, boost immediate revenue inflows, reduce enforcement and litigation costs, and strengthen long-term trust between taxpayers and government.

Dr. Abegbe stresses that the proposal is not a request for tax forgiveness, but a strategic move to improve compliance and accelerate revenue collection.

He also reaffirmed his commitment to continued engagement with policymakers and regulators to ensure Nigeria’s tax reforms remain fair, efficient and sustainable.

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