A financial expert and tax practitioner, Dr. Ernest Abegbe, has urged the nation’s tax authorities, including the Nigeria Revenue Service (NRS), to introduce a temporary waiver on Late Returns Penalty (LRP) and accrued interest to enable companies regularise outstanding tax filings and payments.

Abegbe’s call comes against the backdrop of Section 66 of the Nigeria Tax Administration Act and ongoing reforms aimed at deepening compliance and broadening the national tax base.

He noted that while many businesses have shown willingness to comply with statutory obligations, accumulated penalties and interest — particularly those generated under automated tax platforms such as Taxpromax — have posed financial and operational constraints for companies seeking to clear backlogs.

According to him, the current reform climate presents an opportunity to reset the compliance landscape in a manner that balances enforcement with encouragement.

“The present reform environment offers a unique chance to recalibrate compliance,” Abegbe said. “However, legacy penalties and accrued interest continue to discourage voluntary disclosure and prompt settlement of outstanding liabilities.”

He proposed a structured and time-bound waiver window limited strictly to LRP and interest, without affecting the principal tax due. Such an approach, he argued, would protect government revenue interests while addressing the practical realities confronting businesses.

Abegbe outlined potential benefits of the initiative to include increased voluntary compliance and disclosure, clearance of backlog filings by thousands of companies, immediate revenue inflow to government, strengthened long-term tax culture and trust, as well as reduced litigation and enforcement costs.

“This is not a request for tax forgiveness,” he added. “Rather, it is a strategic compliance enhancement measure designed to accelerate revenue collection while fostering goodwill between taxpayers and the tax authority.”

He reaffirmed his commitment to constructive engagement among policymakers, regulators and the private sector to ensure that ongoing tax reforms achieve fairness, efficiency and sustainability.