Lagos Revenue Service Defends Authority to Direct Banks on Tax Defaulters' Funds

The Lagos Internal Revenue Service (LIRS) has asserted its power to instruct banks to remit funds belonging to tax defaulters, emphasizing that this practice is not new. Tokunbo Akande, a special adviser to the LIRS chairman, explained that the authority to direct third parties to remit funds is in line with established policies.

The LIRS issued a public notice, LIR/003/01/2026, titled "Power to Substitute," pursuant to Section 60 of the Nigeria Tax Administration Act 2025, signed by LIRS Chairman Ayodele Subair on January 21, 2026. This notice informs the public of the LIRS's power to direct individuals holding money on behalf of tax defaulters to remit the funds if the tax liabilities are not settled.

Failure to comply with these directives could lead to penalties. The move is part of efforts to enhance tax compliance and revenue collection at both federal and state levels.