The Lagos State Government has announced plans to begin enforcement actions against residents and businesses that have failed to pay confirmed tax liabilities. The move is aimed at recovering outstanding taxes by accessing funds through bank accounts and through people or organisations connected to the defaulters.
According to a public notice issued by the Lagos State Internal Revenue Service on January 21, 2026, the enforcement will apply to individuals and companies that have ignored tax assessments after they were properly issued and confirmed. The government said it will rely on existing tax laws to carry out the exercise.
The notice explained that the action is backed by the Nigeria Tax Administration Act of 2025, which allows tax authorities to recover unpaid taxes through third parties. Under this law, banks, employers, tenants, business partners, and creditors who hold or owe money to a tax defaulter can be directed to pay part or all of the owed amount directly to the government.
Funds to be recovered may come from salaries, rent payments, business proceeds, or balances in bank accounts linked to the affected taxpayer. The revenue service said this step is part of efforts to improve tax compliance across the state.
Despite the planned enforcement, the tax authority noted that taxpayers still have options under the law. Affected individuals and businesses can seek clarification, challenge their tax assessments within the approved period, or use legal dispute resolution channels provided by tax regulations.
The Lagos State Government advised residents and companies to regularise their tax records promptly to avoid enforcement actions.
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