Tag: Lagos State Internal Revenue Service

The Lagos State Internal Revenue Service (LIRS) has reminded employers across the state to comply with statutory tax filing requirements ahead of the January 31 deadline for annual returns, warning that late or non-compliance would attract significant penalties under the law.

Director of Personal Income Tax at LIRS, Mr. Ayodele Adebayo, issued the caution during an interview, noting that January is a critical month in Nigeria’s tax calendar. He explained that employers are required to file annual Pay-As-You-Earn (PAYE) returns, providing details of all employees engaged during the previous year, whether still in service or not.

Read Also: Nigerian held for six weeks in Qatar cries for FG’s help

Under the Nigeria Tax Administration Act (NTAA) 2025, employers must submit comprehensive schedules of employees’ earnings, taxes deducted, and remitted. Monthly returns of PAYE and Withholding Tax are also mandatory. Adebayo stressed that failure to file by January 31 attracts fines of ₦100,000 in the first month of default and ₦50,000 for each subsequent month, even if PAYE deductions have been remitted.

He emphasised that proper filing is essential for employees to obtain Tax Clearance Certificates, adding that both employers and individuals must file returns separately to remain compliant. “The fact that your organisation has filed PAYE does not exempt you from filing personal returns,” he clarified.

Adebayo noted that compliance is guided by the residency rule, meaning organisations must file returns in Lagos if their employees reside in the state, regardless of where the company’s headquarters is located.

So far, about 10,000 companies have begun filing, with over 7,000 completing the process and 2,000 flagged for errors. LIRS is targeting more than 35,000 companies and has intensified sensitisation efforts to prevent last-minute congestion.

He urged employers to use the digital filing platform, stressing that manual submissions are no longer accepted. “The process is now fully digital. Employers can file from their offices using the LIRS portal. Templates are provided to make compliance easier,” he said.

Accurate and timely filing, Adebayo added, enhances transparency, supports government planning, and strengthens Lagos State’s ability to deliver infrastructure and public services. He advised employers to comply early to avoid sanctions and system overload as the deadline approaches.

The N1.4 trillion tax target revenue target set for the Lagos State Internal Revenue Service (LIRS) would enable the government to implement its fiscal policies aimed at promoting economic growthwith  increased capital expenditure bolstering  long-term development.

The Chairman , Lagos  House of Assembly Joint Committee on  Economic Planning and Budget, Hon. Saad Lukman Olumoh, said the essence of  powering  development projects using  internally generated  revenue  is for the government to do more without taking loans.

 “At this year’s budget signing ceremony, I expressed to Mr. Governor that Lagos State has reached a remarkable level of excellence in revenue generation. Our agency, the Lagos Internal Revenue Service (LIRS), has become the first subnational body to exceed the N1 trillion mark. I am confident that they can achieve even greater results. I requested Mr. Governor to ensure that they are motivated to strive for more, as increased performance will reduce our dependence on loans. This state has the capacity to generate over N5 trillion in internal revenue. It seems we are only beginning to explore our revenue potential.  You cannot talk  revenue projection without referring to leakages. You cannot talk without mentioning some sectors that we have not even touched at all,” he said.

He said the state government has made capital expenditure a priority, highlighting that a significant portion of the funds allocated for infrastructure and long-term economic growth will be sourced from the revenue target achieved by LIRS.

 “Mr. Ayo Subair, the Chairman of LIRS, has made commendable progress by reaching that milestone. Analyzing the trajectory of LIRS over the past five years reveals a consistent growth pattern. Their revenue earnings have shown a steady upward trend. In the 2025 budget, we allocated 1.4 trillion, and I am confident that they will not only meet but exceed this target. As previously mentioned, I believe LIRS has the potential to generate over N4 trillion for our state. Therefore, we have consistently provided them with encouragement and support,” he said.

Read Also: Soun unveils Ogbomoso’s 25-year vision for digital economic growth

He said the approach of targeted spending combined with fiscal caution implies a strategy crafted to support growth while safeguarding macroeconomic stability.

On what he  considers the main achievements for 2024 fiscal year , he said: “The activities of the state government are based on an agenda we refer to as the ‘THEMES PLUS’ agenda. Mr. Governor, Baba Jide Sanwo-Olu, introduced this agenda for his second term. The components of this agenda encompass transportation, infrastructure development, health, poverty alleviation, and education. These elements are encapsulated in the acronym. We have diligently worked to ensure that this agenda, which initially was the THEMES agenda, has now evolved into the ‘THEMES PLUS’ agenda, benefiting all residents of Lagos. I can affirm that the state government is primarily focused on infrastructure development.

In 2024, particularly within the House of Assembly, we have examined the policies of the new administration. It is essential to recognize that our esteemed leader and the ‘city boy,’ as we affectionately call him, President Paul Ahmed Tinubu, assumed office in 2023. His policy framework introduced the Renewed Hope Agenda, which serves as the foundation for our initiatives in the country. The core message was that we cannot persist in our traditional methods; otherwise, we risk the financial insolvency of the nation. Consequently, he implemented several policy reforms, particularly concerning fuel subsidy removal, the deregulation of the foreign exchange market, and various other measures aimed at enhancing Nigeria’s global competitiveness. These changes have had a widespread impact, affecting both individuals and the government alike. As a result we have a lot of infrastructural projects, roads, bridges that were being constructed.”

He said the government took a very prudent decision to set aside some money for  economic shocks as well as diversification. “And what we saw was the prices of goods and services went up. So, the house of assembly as to my situation we are executive. So, we have to be proactive to make sure that adequate provisions were made for these projects so that they don’t become abandoned projects.”

According to him, the government made adequate provision for the impact of the federal monetary policies. “The budget was predicated on 750 naira to a dollar. We all knew where dollar went almost at 2,000 naira to a dollar. So, but because of the initiative that the committee and the house of assembly made, we are able to provide adequately over a N100 billion to take care of this shock. And today, I am happy. We can all attest to the fact that roads are being commissioned. Bridges are being commissioned. A lot of things are being commissioned by the government. So those were the initiatives that we did in the house to ensure that the government is run on auto pilot. Aside from the physical road infrastructure and the likes, there was what we call LASHMA, Lagos State Health Management Agency ‘s Lagos State Health Scheme-Ilea-Eko Health Insurance Scheme. It is run by LASHMA. You might not be using it, but as politicians we have a lot of our people using the scheme. Once you have that insurance, you can approach any hospital, especially our general hospital with the policy and you’ll be treated. A lot of Lagosians are buying into the programme. We brought Lashma on first line charge. First line charge means no matter what happens, they must get their money. And that is telling on the health sector because a healthy nation will always achieve the best. And that is why you see Lagos state is moving forward.”

He also spoke a number of initiatives in the agriculture which   benefitted the population in Lagos significantly.  “Aside from that, we did food palliative – Ounje Eko. We knew all these things will come up. So the State Government and the House of Assembly were prepared. Adequate provision was made in the budget of Ministry of Agriculture and Food Systems. And you can see every week we are doing Sunday markets.And Lagosians were getting food. Apart from the palliative that the Federal Government did, Lagosians were getting food items at 25 per cent discount. In some cases, 50 per cent  discount. Then when we go to the transportation sector, sorry, if you do not mind the way I’m explaining it because I will need to be detailed. The blue buses which the Lagos State government has vested interest in, the budget gave 50 per cent subsidy. Even the blue line, 50 per cent subsidy was given for every commuter. So these were things that were carefully prepared in the budget to take care of the shock arising from the change in policy direction of the federal government. Now, the Compressed Natural Gas (CNG) initiative too under oil and gas. We prepared the response through our IBILE Oil and Gas Corporation (IOGC) established to invest and engage in oil and gas activities.They were given enough provision in their budget. Plus the subsidy that the federal government is doing to ensure that we’re able to move into that CND initiative with less dependent on petrol and diesel  fuel. This is ongoing and Lagosians are buying into it free.So this were the things that were   carefully put into 2024 budget. The transition has been  very, very seamless in Lagos  state. And that is why Lagos was very, very peaceful. And let me just bring you to what they called Detty December. During this period in   December last the Lagos economy recorded over N60 billion because we were secured. In fact, everything was looking right for us in Lagos. So those were the initiatives that we put into  2024 budget that made the government, execute its programme seamlessly.”

The Lagos State Internal Revenue Service (LIRS) has said it is important for every resident of the state, whether in formal employment or not, to file annual tax returns, declaring their income and paying any taxes due as required by law.

Its Executive Chairman, Ayo Subair, said the requirement is backed by the Nigerian Constitution; it is also the law, as stipulated in the Personal Income Tax Act (PITA) and part of the social contract between the government and residents.

He said the provision of free West African Examinations Council (WAEC) registration for SS3 students in state-funded secondary schools is a vital policy of the state government and that free education policy from kindergarten to SS3 is still in operation.

The initiative, part of the THEMES PLUS agenda, is included in the government’s broader efforts to provide essential services such as affordable housing, efficient transportation, free healthcare, youth and small business empowerment programmes, enhanced security, and better road infrastructure, among others.

Subair said a Tax Clearance Certificate (TCC) is required to access the free WAEC registration provided by the government.

Subair said: “It is standard procedure to require a TCC to access government services. To obtain a TCC, individuals must file their annual tax returns for the applicable assessment year and ensure their tax payments are currently based on their declared income.”

He noted that requiring a TCC for access to free services is not a new policy but a longstanding practice intended to foster fairness and transparency in using public resources.

He explained that tax compliance is essential for the sustainability of public programmes and services.

He said tax revenues help to fund various public programmes that benefit millions of Lagos residents.

Read Also: LIRS reaffirms Jan. 31 deadline for annual tax returns

He highlighted that the requirement has been in practice for a long time and aligns with Section 85 of the PITA 2004 (as amended).

To enhance convenience and streamline the process, he indicated that LIRS has deployed staff and agents to markets and schools, establishing one-stop centres where individuals can obtain their TCC without needing to visit tax offices.

“Flexible payment options, including installment plans, are also available, though full payment must be completed before the TCC is issued,” he said.

 He added that the TCC of guardians will be accepted from students who do not reside with their biological parents.

By meeting their civic responsibilities, residents play a role in the growth and development of Lagos State, reinforcing the government’s commitment to enhancing the quality of life for its citizens.

For informal sector taxpayers, who might not have detailed financial records, he stated that the government has introduced a presumptive tax of ₦10,100 (comprising ₦10,000 in annual tax and a ₦100 development levy) to facilitate their inclusion in the tax net. “The aim is fairness, accountability, and sustainability,” emphasised Subair. “This policy is not about inflicting hardship, but rather ensuring that everyone, including those in the formal sector, contributes their fair share to sustain the provision of essential services.”

 Subair said the state is dedicated to offering quality and efficient services to its residents. “As part of this mission, it mandates that all taxable individuals register with the tax authority, submit their returns, and pay applicable taxes to maintain an updated TCC,” he said.

The Lagos State Internal Revenue Service (LIRS) has issued a reminder to all employers in the state to file annual tax returns for the 2024 financial year on or before January 31, 2025. This requirement is in line with the Personal Income Tax Act (PITA) Cap P8 LFN 2004 (as amended).

In a statement signed by the Executive Chairman of LIRS, Dr. Ayodele Subair, he emphasised that meeting this deadline is a legal obligation, warning that failure to comply will result in statutory sanctions, including penalties, as prescribed by law.

Read Also: LIRS affirms Jan. 31 deadline for annual tax returns filing

Section 81 of PITA mandates employers to submit comprehensive annual returns detailing all emoluments paid to employees, including taxes deducted and remitted to relevant tax authorities. These returns must be filed not later than January 31 each year and cover the income and taxes paid during the preceding year (2024).

Dr. Subair stressed: “Employers must prioritise the timely filing of their annual income tax returns to avoid penalties. Submitting returns on or before the deadline ensures compliance with the law and supports accurate revenue tracking, which is essential for Lagos State’s fiscal planning and sustainability.”