The Federal Government cuts the interest rate payable on late settlement of tax liabilities, with the updated regime set to take effect from October 1, 2026. The finance ministry announces the change and sets out the new terms for calculating interest when taxes are not paid on time.
According to reports, the policy applies beyond federal taxes, extending to tax authorities responsible for collecting from the different tiers of government. Vanguard reports that the change covers the Federal Government, state tax authorities, and the FCT tax authorities, while The Punch highlights the effective date and the direction of the adjustment. The outlets emphasize the same core measure—lower interest for late tax payments—while focusing their reporting on different aspects of implementation and coverage.
Overall, the reporting converges on the timing and the purpose of the reform: reducing the cost of late tax payment starting from October 1, 2026, under the announced interest-rate framework.
