The 2025 Nigerian Tax Administration Act (NTAA) fundamentally changed the penalty regime for payroll non-compliance.
For Nigerian employers, the key change is a 40% penalty on any PAYE tax that should have been deducted but was not.
What changed with NTAA 2025?
Before 2025, penalties for late PAYE remittance were relatively modest — a fixed percentage on outstanding amounts.
NTAA 2025 introduced a tiered penalty structure:
What does this mean for a typical Nigerian SME?
For a business with a ₦5 million monthly payroll, the estimated PAYE liability is approximately ₦700,000 per month.
If this is not deducted and remitted, the NTAA 2025 penalty is ₦280,000 per month — or ₦3.36 million per year.
How inqom prevents this
inqom calculates PAYE for every employee every month using the 2025 NTAA bands, deducts it automatically,
and prepares the remittance schedule. Every payroll run produces a FIRS-compliant report showing the exact
amounts deducted and the remittance references.
The compliance engine checks 10 anomaly conditions before each run — ensuring no employee is missed,
no salary change is overlooked, and no deduction is miscalculated.
How much could NTAA 2025 cost your business?
Enter your payroll size and see your exposure in seconds.
Penalty Exposure Calculator
Based on NTAA 2025 Section 40 penalty rates
inqom handles all of this automatically
Calculates PAYE for every employee using 2025 NTAA rates automatically
Remits pension to all PFAs via PENCOM-approved PSSP with no manual transfers
Flags 10 or more anomaly types before they become penalties every payroll cycle
Generates FIRS-compliant payroll reports and a full audit trail on demand
NTAA 2025 Penalty Rates
The 2025 Nigerian Tax Administration Act introduced a 40% penalty on non-deducted PAYE tax and a 10% surcharge on late pension employer contributions. These rates apply per FIRS guidelines effective January 2025.
See inqom working with your real numbers
Book a free 30-minute call and we will show you exactly how inqom handles your payroll compliance — PAYE, pension and NHF. No obligation. No sales pitch.