Lagos to use banks and partners to recover unpaid taxes
Lagos State Internal Revenue Service (LIRS) has announced new measures to recover unpaid taxes from defaulting taxpayers. A public notice dated January 21, 2026 explains that LIRS will use its statutory powers to collect outstanding taxes through third parties such as banks, employers, and business partners. The notice, signed by Ayodele Subair, cites Section 60 of the Nigeria Tax Administration Act, 2025, as the legal basis for these actions. LIRS warns that non-compliance with these directives could result in penalties, enforcement actions, and prosecution.
TLDR
- LIRS will recover unpaid taxes from defaulting taxpayers by directing third parties—including banks, employers, tenants, debtors, and business partners—to remit owed funds.
- The directive is based on Section 60 of the Nigeria Tax Administration Act, 2025, and was communicated in a notice dated January 21, 2026.
- Affected parties must remit specified amounts to LIRS or notify the agency in writing if they do not hold funds for the taxpayer.
- Failure to comply with substitution notices may result in penalties, enforcement measures, and possible prosecution.
- Taxpayers are advised to settle outstanding assessments promptly to avoid additional liabilities.
