Nigerian tax audits can be triggered by income fluctuations, late filings, or random selection. Types include desk audits (2-4 weeks), field audits (3-6 months), and tax investigations. Keep 6 years of records. You have 30 days to object to findings, then 30 days to appeal to Tax Appeal Tribunal. Cooperation is mandatory—refusal leads to penalties and estimated assessments.
Tax Audit Guide for Nigeria
What to expect, how to prepare, and your rights during a tax audit
What should I do if I receive a tax audit notice in Nigeria?
Upon receiving an audit notice: 1) Don't panic—it may be routine. 2) Note the deadline to respond (usually 14-21 days). 3) Gather requested records. 4) Consider engaging a tax professional. 5) Respond within the deadline. 6) Cooperate fully but don't volunteer unnecessary information. 7) Keep copies of everything submitted.
Types of Tax Audits
Desk Audit
Review of filed returns at FIRS office without visiting your premises
Duration: 2-4 weeks
Field Audit
On-site inspection of books, records, and operations at your business
Duration: 3-6 months
Tax Investigation
Deep dive into suspected tax fraud or significant under-declaration
Duration: 6-18 months
Back Duty Audit
Review of multiple prior years for previously untaxed income
Duration: 6-12 months
Common Audit Triggers
Your Rights During an Audit
How to Prepare for an Audit
Records to Maintain (6 Years)
When You Receive an Audit Notice
- 1Read the notice carefully—note scope and deadline
- 2Gather all requested documents (don't submit extras)
- 3Consider engaging a tax professional
- 4Respond within the deadline
- 5Request extensions in writing if needed
- 6Keep copies of everything submitted
- 7Be cooperative but measured in responses
Objecting to Audit Findings
Informal Discussion (7 days)
Discuss findings with the audit team. Many issues are resolved here.
Formal Objection (30 days)
File written objection with FIRS stating grounds for disagreement.
Tax Appeal Tribunal (30 days)
If objection fails, appeal to TAT within 30 days of final assessment.
Federal High Court
Further appeals go to Federal High Court, then Court of Appeal.
Frequently Asked Questions
What triggers a tax audit in Nigeria?
Common triggers include: large unexplained cash deposits, significant income fluctuations, repeated losses, late filings, industry-specific targeting, random selection, tips from third parties, and mismatches between reported income and lifestyle.
How long does a Nigerian tax audit take?
Desk audits typically take 2-4 weeks. Field audits can take 3-6 months depending on complexity. You have the right to request reasonable timelines and can appeal extended delays.
Can I refuse a tax audit?
No, taxpayers are legally required to cooperate with FIRS audits. Refusal can result in penalties, estimated assessments, prosecution, and seizure of assets.
What records should I keep for audit?
Maintain 6 years of: bank statements, invoices (issued and received), receipts, contracts, payroll records, asset registers, tax returns filed, and correspondence with tax authorities.
Can I appeal an audit finding?
Yes, you can object to an assessment within 30 days. If not resolved, appeal to the Tax Appeal Tribunal within 30 days of the final assessment.
Keep Audit-Ready Records
KeepAm organizes your income, expenses, and receipts for easy audit response