The Lagos State Internal Revenue Service (LIRS) has activated the Power of Substitution under Section 60 of the Nigeria Tax Administration Act, 2025, to strengthen tax enforcement and recover unpaid liabilities from defaulting taxpayers. The agency disclosed this in a public notice, explaining that it can now direct banks, employers, tenants, debtors, and other third parties holding funds for a taxpayer to remit such monies directly to LIRS.
According to LIRS, the measure applies to Personal Income Tax, Capital Gains Tax, Stamp Duties, and Withholding Tax. Once a substitution notice is issued, compliance becomes mandatory, with failure attracting sanctions under the law.
Meanwhile, the National Tax Policy Implementation Committee has begun stakeholder engagements to ensure smooth and inclusive implementation of the new tax regime. Its chairman, Joseph Tegbe, said the goal is to align policy intent with real-world business and citizen realities.
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, also confirmed early gains, noting reduced PAYE deductions and higher take-home pay for some workers in January 2026.
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