Lagos Digital Tax Filing Faces Skills Gap Challenges

The Lagos State Internal Revenue Service (LIRS) is implementing a fully digital tax filing system, but a significant number of businesses in the information sector lack the digital skills necessary to engage with it. Waheed Adisa, a property link agent, highlighted that many individuals, including those earning below the annual turnover threshold of N12 million, are at risk of penalties due to non-compliance with the new presumptive tax regime.

The Nigeria Tax Administration Act (NTAA) mandates that all taxable individuals file annual income returns. Abideen Akand, the executive chairman of LIRS, noted that 50% of Nigerians lack basic digital skills, complicating their ability to navigate the tax filing portal.

The LIRS is awaiting regulatory approval for a USSD platform to ease the filing process. As of April 2026, LIRS plans to take legal action against individuals and firms in tax default, amid concerns that digital illiteracy contributes to compliance issues.