₦airaland Forum

This is contained in a public notice issued by the Lagos State Internal Revenue Service (LIRS) on the “Power of Substitution pursuant to Section 60 of the Nigeria Tax Administration Act, 2025”.

The Lagos State Government has announced plans to begin seizing money belonging to defaulting taxpayers directly from their bank accounts and through third parties such as employers, tenants, debtors and business partners, as part of efforts to recover outstanding taxes.



This is contained in a public notice issued by the Lagos State Internal Revenue Service (LIRS) on the “Power of Substitution pursuant to Section 60 of the Nigeria Tax Administration Act, 2025”.




The notice was signed by the Executive Chairman of LIRS, Ayodele Subair, and dated January 21, 2026.

According to the notice, LIRS said it is informing “the general public, particularly employers, financial institutions, business operators and tax agents, of the provisions of Section 60 of the Nigeria Tax Administration Act, 2025 (NTAA 2025) relating to the Power of Substitution vested in the relevant tax authority.”

The agency explained that the law “empowers the Lagos State Internal Revenue Service to direct any person holding money on behalf of, or owing money to, a taxpayer who has failed to pay an established final tax liability when due, to remit such money to the Service in settlement (or partial settlement) of the outstanding tax.”


LIRS described the substitution power as “a lawful collection mechanism designed to ensure efficient recovery of unpaid taxes, including Personal Income Tax (PIT), Capital Gains Tax (CGT), Stamp Duties and Withholding Tax (WHT) administered by LIRS.”

The service warned that where a taxpayer “fails, neglects or refuses to settle any established outstanding tax liability when due,” it may invoke Section 60 to compel third parties to pay the debt on behalf of the defaulter.

Those who may be directed to remit such funds include “banks and other financial institutions,” “employers,” “tenants, debtors, or customers of the taxpayer,” “agents, business partners, and any person holding money on behalf of the taxpayer,” as well as “any person owing money to the taxpayer, whether presently due or accruing.”

LIRS stated that “once a substitution notice is issued, the person served is statutorily required to remit to LIRS the amount specified in the notice from funds belonging to, or payable to, the defaulting taxpayer,” adding that “the tax liability is deemed paid to the extent of the remittance made pursuant to the substitution.”

The agency further warned that “failure to comply with such a directive constitutes an offence under the Act.”

Specifically addressing banks and financial institutions, LIRS said that upon receipt of a substitution notice, they are required to “remit the stated amount to LIRS without delay” and “provide confirmation of compliance through the LIRS e-Tax platform.”

It added that banks are also required to “report the taxpayer’s available balances and any encumbrances as may be requested.”

The revenue service also warned of stiff consequences for non-compliance, stating that it “reserves the right to apply the maximum penalties or seek criminal prosecution as prescribed by the Act, in cases of deliberate evasion, fraud, or persistent non-compliance.”

On enforcement, LIRS said it would notify affected taxpayers of penalties “through formal notice of assessment, electronic communication, or any other authorized means under the Act,” noting that failure to comply may result in actions including “garnishment of bank accounts,” “distrain action,” “enforcement of liens,” and “prosecution where applicable.”

While rolling out the enforcement framework, LIRS said taxpayers still retain the right to “request clarification on imposed penalties,” “apply for review or objection within the statutory timelines,” “seek Advance Rulings on compliance obligations,” and “access dispute resolution processes provided under the Act.”

The agency urged Lagos residents and businesses to “review their tax compliance status,” “regularize outstanding obligations,” “file and remit taxes as required by law,” and “engage with LIRS proactively to avoid sanctions.”



https://saharareporters.com/2026/01/25/lagos-moves-seize-tax-defaulters-money-directly-bank-accounts-employers-creditors

I don't kukuma have money for you people to collect .. you na no dey give money to support businesses na to dey collect, if the business crash finish which tax you na go collect again..

Where is Taiwo Oyodele who told us otherwise? Transparency is a very important ingredient in the social contract. We are not living in George Orwell's Animal Farm.

Nlfpmod, help me tell Oyedele, Lagos is starting to visit our banks.

This is a very wide net that will catch a lot of people.

This provision in the Tax law should be called 'The No Way Out' clause.

No escape from this.

If Lagos go aggressive with the tax law, its total tax revenue will double within 3 years.

They will deny this latter in the day.

AMINDA:
Where is Taiwo Oyodele who told us otherwise? Transparency is a very important ingredient in the social contract. We are not living in George Orwell's Animal Farm.

The agency explained that the law “empowers the Lagos State Internal Revenue Service to direct any person holding money on behalf of, or owing money to, a taxpayer who has failed to pay an established final tax liability when due, to remit such money to the Service in settlement (or partial settlement) of the outstanding tax.”

Read and understand before jumping to respond. Pay particular attention to the part in bold. Once a tax assessment is finalized, the tax payer has the obligation to pay. If the tax payer refused to pay, the tax authority has the power of substitution and including the power of distrain to recover the tax liability. This is not a new law, it has been part of our tax laws for decades.

Let me also educate folks like you on what a final tax liability is. It means a tax assessment that has been served, contested and finalized. That is, the tax payer has been served and has accepted the assessment or he has contested it and an agreement has been reached with the tax authority or a court has given a final judgement on it.

This is not new . This is power of distrain . It applies to final and conclusive assessments. The bank can only put lien on all your accounts till payment is made.

iwaeda:
They will deny this latter in the day.

You want to blame Tinubu again for Lagos State tax collection endeavors? Very funny. But it's Tinubu till 2031!!

seunmsg:
Read and understand before jumping to respond. Pay particular attention to the part in bold. Once a tax assessment is finalized, the tax payer has the obligation to pay. If the tax payer refused to pay, the tax authority had the power of substitution and including the power of distrain to recover the tax liability. This is not a new law, it has been part of our tax laws for decades.

Let me also educate folks like you on what a final tax liability is. It means a tax assessment that has been served, contested and finalized. That is, the tax payer has been served and has accepted the assessment or he has contested it and an agreement has been reached with the tax authority or a court has given a final judgement on it.

Oga, many of them know these rules aren't new but are intentionally feigning ignorance because of hatred and bitterness for the government. They are hoping to sell on negative narratives to the un-informed people about the new tax law so as to give the government a negative tag.

dragunov:
You want to blame Tinubu again for Lagos State tax collection endeavors? Very funny. But it's Tinubu till 2031!!

Tinubu doesn't go beyond 2027 brother, who is running Lagos.

iwaeda:
Tinubu doesn't go beyond 2027 brother, who is running Lagos.

Whatever makes you sleep, bloke. Whatever gives you the high.

It is becoming too risky to maintain a bank account in Nigeria.
Criminal Tinubu and his cronies have given themselves easy access to our money.

People will start keeping money in banks.

Lol. I told them now. Yekini is a savvy sagacious tax master fixated on colonising the fiscal future of Nigeria via mega projects. Una go chin chomtin. Lol

This can only happen in the south just as road safety and police are over active in the south. Nothing concern north with this

We have go back to 100% cash based economy.

These politicians and their cronies in the CBN encouraged market women and poor traders in the villages to open bank accounts, so that they can get their hands on their monies in guise of taking taxes..

If I offer medical services that people's life depend, and you touch my money in the bank guise of taking taxes, I will pull out every penny convert them to dollars and keep it with me.

Anybody that needs medical services must bring cash in naira or dollars. If you don't have cash sorry I can't help you.

My business, my rules.

Even Tinubu bribed APC delegates with dollars to steal the mandate of Nigeria, I also have the right to ask to paid in dollars.. I am more useful to this country than those APC delegates.

This is criminal. With time, this evil template will get adopted nationwide. You don't access a person's bank account simply because he didn't pay tax. You charge the person to court. What Lagos state is proposing to do is brazen criminality.
It will mean they will force banks to provide them with confidential information about customers. There is no guarantee that such information will not fall into the hands of dubious elements.
I don't think any bank will agree to this. Customers money are held in trust. Allowing a third party access to these accounts is a gross violation

Simply said

Dogalmighty17:
This is criminal. With time, this evil template will get adopted nationwide. You don't access a person's bank account simply because he didn't pay tax. You charge the person to court. What Lagos state is proposing to do is brazen criminality.
It will mean they will force banks to provide them with confidential information about customers. There is no guarantee that such information will not fall into the hands of dubious elements.
I don't think any bank will agree to this. Customers money are held in trust. Allowing a third party access to these accounts is a gross violation

dragunov:
Whatever makes you sleep, bloke. Whatever gives you the high.

Truth is bitter.

iwaeda:
Truth is bitter.

Yeah, whatever.

dragunov:
Yeah, whatever.

Let me just be mynding my business.

iwaeda:
Let me just be mynding my business.

Yeah. Skedaddle!!

dragunov:
Yeah. Skedaddle!!

Nlfpmod

iwaeda:
Nlfpmod

Now the bloke is trying na get me banned.

iwaeda:
They will deny this latter in the day.

they will deny or your state governments too will follow suit

Lanretoye:
they will deny or your state governments too will follow suit

You don't sleep because of a common man like me. Tinubu's taxes law haunt you too. Let me LOL.

iwaeda:
You don't sleep because of a common man like me. Tinubu's taxes law haunt you too. Let me LOL.

what’s my business with tax law,a reasonable person will see no issue about paying taxes.how do you feel when you feed your family at home if paying taxes looks like an abomination to you

Lanretoye:
what’s my business with tax law,a reasonable person will see no issue about paying taxes.how do you feel when you feed your family at home if paying taxes looks like an abomination to you

I pay taxes, but knowing how fraudulent APC can be. Think over yourself.

Still waiting to say memo is FAKE.

Mynd44, has anyone changed this story.