Lagos Revenue Service Employs Power of Substitution to Enhance Tax Recovery

The Lagos Revenue Service has implemented the power of substitution under the new tax law to boost tax recovery efforts. This provision, as per Section 60 of the Nigeria Tax Administration Act 2025, empowers tax authorities to collect outstanding taxes directly from third parties holding funds for defaulting taxpayers.

The move is part of a broader strategy to enhance tax enforcement and recovery from defaulters. The Nigeria Tax Policy Implementation Committee, led by Joseph Tegbe, is actively engaging stakeholders to ensure effective implementation of the new tax act.

The Presidential Fiscal Policy Reform Committee, chaired by Taiwo Oyedele, is working closely with the Nigeria Revenue Service to bridge policy execution gaps and ensure that tax reforms benefit both businesses and citizens. Dr.

Zacch Adedeji, Chairman of the Nigeria Revenue Service, is focusing on harmonizing implementation priorities to strengthen tax compliance.