LIRS denies plan to seize funds from banks over unpaid taxes
The Executive Chairman of the Lagos State Internal Revenue Service, LIRS, Dr Ayodele Subair, has dismissed claims that the agency intends to directly seize funds from the bank accounts of defaulting organisations through financial institutions or third parties.
He clarified that the objective of LIRS is to recover outstanding tax liabilities lawfully in order to enable the government provide essential public services and infrastructure for residents of the state.
Subair stressed that the agency has no intention of imposing taxes arbitrarily, noting that taxpayers retain the right to challenge any assessment issued to them through appropriate legal channels.
Speaking during an interview on ARISE News Channel, on Tuesday night, the LIRS boss said the service is not in a rush to aggressively enforce the new tax law, but is instead encouraging individuals and organisations in default to come forward voluntarily and settle their obligations.
Addressing the timeline for implementing the new enforcement provisions, Subair explained that public enlightenment remains a priority at this stage.
“It will take some time because we are still focused on educating people. The notice we issued was part of that enlightenment process, to make people aware of what the law provides. We do not make the laws; we are not policymakers. Our responsibility is to enforce existing laws,” he said.
He added that the notice was intended to inform taxpayers that certain recovery mechanisms exist under the law and could be applied when necessary, while emphasising that LIRS prefers voluntary compliance over enforcement.
According to him, the agency’s main goal is to significantly improve voluntary tax compliance, which he described as currently low.
“Nobody wants enforcement. We want people to comply willingly. The low level of voluntary compliance is one of the reasons Nigeria’s tax-to-GDP ratio remains poor. This challenge is not unique to Lagos or Nigeria; it is a global issue,” Subair said.
On the estimated value of outstanding tax liabilities in Lagos State, the LIRS chairman said it is difficult to place a fixed figure on it, describing the situation as fluid and constantly changing.
He noted that while there is significant revenue potential, the process of recovering unpaid taxes requires time and patience.
“There is a lot that is ready to be harvested, but it takes time for all the necessary steps to be completed. Even though the new law came into effect on January 1, 2026, we intend to exhaust all reasonable avenues to encourage voluntary compliance before resorting to enforcement,” he explained.
Subair also pointed out that taxpayers are legally entitled to contest assessments they believe are incorrect, adding that this process naturally limits the accumulation of excessive liabilities.
“When people are convinced that they truly owe, they pay. And where they disagree, they have the right to challenge the assessment,” he said.
