Many small businesses in Nigeria remain non-compliant with the new tax laws effective January 1, 2026, risking penalties despite available reliefs. The Nigeria Revenue Service (NRS) is intensifying digital enforcement, making accurate registration and reporting critical. To avoid fines—which include N100,000 for initial late filing and potential imprisonment for misrepresentation—small businesses must maintain valid Tax Identification Numbers (TIN), separate business and personal finances, keep verifiable records, and file returns regardless of profitability. Experts stress that digital compliance is now essential to secure government-backed tax exemptions.