The Lagos State Internal Revenue Service (LIRS) says it is focusing on increasing voluntary tax compliance rather than immediately moving against defaulters, despite the existence of significant outstanding tax liabilities across the state.
The Executive Chairman of the Lagos State Internal Revenue Service (LIRS), Ayodele Subair says the agency is focusing on increasing voluntary tax compliance rather than immediately moving against defaulters, despite the existence of significant outstanding tax liabilities across the state. He stated that the agency’s priority is to improve compliance levels, which he described as “very low,” contributing to Nigeria’s poor tax-to-GDP ratio.
Speaking during an interview with ARISE NEWS on Tuesday, he said, “We just want to increase the level of voluntary compliance. It’s very low at the moment, which is why our tax to GDP ratio is very low. People just do not want to pay their taxes. It’s a global issue. All over the world, nobody wants to pay taxes. So our own work is just to continuously enlighten and educate people. And when we have to act, then we act.
“Our plan, even though it came into effect on the 1st of January 2026, we’re still going to take our time to totally exhaust all the means and possibilities of getting people to voluntarily comply. I know that there’s been an effluxion of time. I know that these people probably do not want to pay. But we’ll give it some time. There’s a lot of talk in the press that we need to have a human face. There has to be something bridging the technicality and all the legal side and looking at the realities on the ground. Of course, all the tax authorities are ready to continuously engage defaulting taxpayers.
“It will take some time because we’re still trying to educate people. The reason which we put out a notice really is just to continue that enlightenment and for people to know that this is a position of the law. We do not write the laws. We are not policy makers. We don’t write the laws. What we do is enforce the laws. So, we need to let people who do not have the knowledge know that this is a mechanism that we can decide to use at any point in time. It’s just really to encourage people to do voluntary compliance, which is what we want. Nobody wants enforcement.”
Responding to questions on whether Lagos has corporations and individuals with outstanding liabilities ready for enforcement action, Subair acknowledged that there is “a lot that is ready to be harvested,” but stressed that enforcement would not be rushed.
Subair said enforcement actions, including third-party substitution, remain lawful options that could be deployed if necessary, but reiterated that “nobody wants enforcement.”
On the possibility of legal disputes arising from such measures, he said, “I think that is to be expected. There will always be dispute. We are making claims. The taxpayers feel that maybe what we are asking them for is a bit too high. People will always contest, no matter what laws you have in place. And really and truly, it’s a democracy. We have the rule of law in Nigeria. LIRS is a responsible citizen, corporate citizen, and we respect the law. So we are not against people who want to dispute or take us to court. But we expect that there will be some litigation.”
Melissa Enoch
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