Tax Refund in Nigeria: Do You Actually Get Money Back?

Under Nigeria’s current tax administration framework, an overpayment can be refunded after the relevant tax authority has reviewed and established that the excess is due. The Nigeria Tax Administration Act 2025 provides for refunds of overpaid or excess tax. 

So yes, tax refunds are real in Nigeria.

But there is more to it than simply paying too much and waiting for money to appear in your account.

How do you end up overpaying tax?

One common situation is withholding tax.

If tax has already been withheld from payments you received, that amount can count as a tax credit when your final tax liability is calculated.

The 2026 Personal Income Tax Guidelines show this clearly. PAYE deducted and withholding tax credits are taken into account when arriving at the final tax position. If the credits are greater than the tax due, the return can show “Refund Due.” 

For example, if your final tax liability is ₦500,000 but ₦650,000 has already been deducted or paid as tax credits, the ₦150,000 difference may result in a refund position, subject to the applicable process.

Overpayment can also happen when a tax payment is made incorrectly or duplicated.

For businesses, VAT can create another type of refund situation where the applicable conditions for an excess VAT refund are met.

So, do you actually get the money?

You can, if the refund is established as due.

But it isn’t automatic.

The tax authority has to review the claim and determine that there is actually an overpayment.

Under the Nigeria Tax Administration Act 2025, a tax refund due is to be made within 90 days of the relevant tax authority’s decision. The law also allows the excess to be set off against another tax liability instead of being paid out directly. 

For VAT, the Act provides a separate refund process, including a 30 day period for a valid refund request. 

So there’s an important distinction:

Overpaying tax can create a refund due.

A refund due still has to go through the refund process.

This is where your records matter

If you don’t have a clear record of what you earned, what was deducted and what you already paid, it becomes harder to know whether you’ve overpaid in the first place.

This is particularly relevant if you have multiple income sources or receive payments where withholding tax has already been deducted.

Your invoices, payment records, tax credits and other financial documents help establish the numbers behind your tax position.

And sometimes, the problem isn’t that you owe more tax.

You may have already paid too much.

LessaTax helps you keep track of the numbers.

By keeping your income, expenses, invoices, receipts, contracts and other financial records organised, LessaTax helps you maintain a clearer picture of your tax position.

LessaTax won’t let you lose track of your finances and end up overpaying tax simply because your records weren’t organised.