A new N5 million administrative penalty for awarding contracts to unregistered vendors is tightening compliance requirements for Nigerian businesses, raising concerns about how micro, small, and medium enterprises (MSMEs) will navigate the country’s expanding tax enforcement regime.
“The new penalty makes it more difficult for business owners not registered for tax purposes with the relevant tax authority to win contracts,” said Olamide Sulaiman, a Tax Consultant at Forvis Mazars. “Banks, investors, and public institutions generally prefer t
