What a Nigerian tax refund application must contain
How a Nigerian business applies to the NRS for a tax refund, what the application and declaration must state, and the penalty for a false claim.
By Achekam · · 4 min read · For Running a business businesses in Nigeria
You have worked out that the business overpaid. Perhaps a payment went through twice, or an instalment was larger than the final liability. The money is yours, but it will not come back on its own. Someone has to ask for it, in the form the NRS expects, with the evidence to back it, and someone senior has to sign a declaration that it is true.
The NRS's Guidelines on Tax Refund, Information Circular No. 2026/17 published on 29 June 2026, set out how. This article goes through the two ways to apply, the details the application must give, the declaration and who may sign it, the documents to attach, and the penalties the NRS sets for a false claim.
Two ways to apply
The guidelines say a tax refund application is made either through the NRS tax administration solution, its online system, or by an application to the Executive Chairman of the NRS.
VAT is the exception. Under the guidelines, VAT refund applications go to the relevant Executive Director instead. If your claim mixes VAT with other taxes, treat it as two applications.
There is also a time limit. The NRS says no tax refund claim will be allowed unless it is made within six years after the end of the relevant year of assessment. An overpayment found while reviewing old records may already be close to that line.
What the application must state
According to the guidelines, the application gives:
| Item | What to write |
|---|---|
| Applicant's name and Tax ID | Exactly as registered with the NRS |
| Basis of the claim | Why a refund is due: paid twice, paid in error, overpaid on assessment |
| Tax type | Company income tax, withholding tax and so on |
| Amount | The figure claimed, and how it was worked out |
| Period and nature of the transactions | The year of assessment or months concerned, and what the payments were |
Write the basis in plain words and make the arithmetic visible. "We paid the same liability twice; receipts attached" is a better basis than a page of general argument.
The signed declaration
The application must include a declaration. For a company, the guidelines say it is signed by a director, a principal officer or an authorised officer of the entity; an individual applicant signs their own.
Take the declaration seriously, because it puts a name to the claim. The person who signs should have seen the workings and the evidence, not just the covering letter. If your accountant prepared the claim, the director signing should still go through it with them before putting pen to paper.
Supporting documents from your ledger and files
The guidelines require supporting documents to be attached. What those are depends on the basis of the claim, but for most overpayments the evidence comes from two places.
Your books. In Achekam, the general ledger lists every posted line, and the trial balance shows each account for all time, for a period or at a date, with a check that debits equal credits. For a refund claim, print the tax account in the general ledger for the period, showing each payment and the liability it was meant to settle. A claim that the business paid more than it owed is far stronger with the ledger showing both figures side by side.
Your files. Achekam's Document Centre organises files into folders you can tag and search, and keeps a file's earlier versions when it is replaced. Gather the payment receipts, the returns or assessments for the period, bank statements showing the debits, and any correspondence, in one folder for the claim. Keep a copy of the application as sent, with proof of submission.
A useful list to work from:
- The return or assessment showing the true liability.
- Every payment receipt for that tax and period.
- Bank statement lines showing the money leaving.
- The ledger extract.
- A short computation of the amount claimed.
- The signed declaration.
Penalties for a false or fictitious claim
The NRS takes false refund claims seriously. The refund guidelines state that obtaining a VAT refund through a false or fictitious claim attracts a penalty equal to 100 per cent of the VAT refunded, plus interest at the prevailing Central Bank of Nigeria Monetary Policy Rate. Obtaining any other tax refund through a false or fictitious claim attracts 50% of the amount refunded, plus interest at that rate.
The NRS's penalties page adds that providing inaccurate or misleading information can lead to severe penalties, including prosecution.
The lesson is not to avoid claiming; it is to claim only what the evidence supports. When in doubt about part of a claim, leave it out or ask your adviser first.
The NRS sets out who is eligible, how to apply, the time limits, how refunds are paid or set off, and the penalties in its Guidelines on Tax Refund.
Letting your accountant prepare it with you
A refund claim is a natural job to share with your accountant. A business can appoint its accounting firm in Achekam by the firm's Achekam address or firm code, choosing a role such as accountant, tax practitioner or adviser and an access level; the firm accepts or declines. With access to the ledger and the claim folder, the firm can prepare the computation and application from the books while you supply what only the business has.
Divide the work clearly: the accountant prepares and checks; a director reviews and signs the declaration; someone keeps the submission record.
Whether a refund is due at all is covered in when a Nigerian business is owed a tax refund. How to give an adviser access safely is explained in giving your tax adviser access.
General guidance only, not advice on your own circumstances. Tax and payroll rules change: check the current position with the authority or your adviser.
