The Federal Government of Nigeria is implementing a more aggressive strategy to boost revenue, with a significant focus on recovering outstanding tax debts. A key part of this plan involves leveraging financial institutions and technology, setting the stage for a major enforcement push in 2026.
What Constitutes a Tax Debt Under the New Framework?
The government has broadened the legal definition of tax debt, moving beyond simple non-payment. According to the provisions, any tax unpaid 30 days after its due date automatically qualifies as a recoverable debt. This also includes situations where a taxpayer fails to settle an assessed tax bill, along with any penalties and interest, after receiving a formal notice.
The definition is comprehensive. It covers cases of under-assessment, where authorities later find that a taxpayer paid less than required. The shortfall becomes an enforceable liability once a demand is issued. Similarly, if tax reliefs or refunds were issued in error, the money must be returned, and it is legally treated as a debt owed to the government.
The Path to Third-Party Recovery via Banks and Fintechs
One of the most notable aspects of the renewed drive is the provision allowing tax authorities to assign debt recovery to third parties. This is where institutions like Access Bank, Zenith Bank, Opay, and Moniepoint could become involved. However, this step is not taken lightly.
The law mandates that all conventional recovery methods must be exhausted first. This includes issuing formal notices and pursuing all available enforcement options. Only after these steps fail can a debt be assigned to a third-party agent. Furthermore, the debt must be of significant value and have remained outstanding for a period deemed appropriate by the authorities.
Taxpayers subject to this process must be notified in writing, identifying the third party handling the recovery. The tax authority retains the power to revoke this assignment at any time and resume direct recovery efforts.
Technology as the Engine for Revenue Targets
This stringent approach is directly tied to the government's ambitious revenue goals. Nigeria aims to generate at least ₦17.85 trillion from tax and customs in 2026. Achieving this target hinges on advanced technology and data integration.
The National Revenue Service plans to deepen its visibility into financial transactions by linking its systems with platforms like the Nigeria Inter-Bank Settlement System (NIBSS). As bank accounts become increasingly linked to Tax Identification Numbers (TINs), the space for evasion is rapidly shrinking. Enforcement is moving closer to the actual points where money is held and transacted.
While this framework aligns with global practices aimed at reducing leakages, concerns have been raised about safeguards. Reports, including one from TechCabal, note limited clarity on how third-party recovery agents will be supervised and how taxpayers can challenge their actions. These questions are likely to shape future debates on balancing enforcement with taxpayer rights.
The overarching message from the Tinubu administration is unequivocal: tax compliance is now non-negotiable, and the financial and legal consequences of ignoring obligations are set to increase significantly.
