March 29, (THEWILL) — Residents of Lagos are experiencing significant anxiety regarding the state government’s mandate requiring all taxable adults to submit their personal tax returns by March 31, 2026, or face serious repercussions for non-compliance.
This directive comes in the wake of new tax legislations introduced by the federal government, which have dramatically transformed the nation’s fiscal structure, significantly affecting both state and local governments.
Consequently, the state government has initiated a vigorous campaign and public awareness effort to highlight the significance of the directive to its residents. Additionally, it has established a portal to facilitate smooth compliance, providing essential support for digital engagement by all taxable adults within the state.
In a statement issued on February 25, 2026, the Executive Chairman of Lagos Inland Revenue Service (LIRS), Ayodele Subair, said timely filing remained a constitutional and statutory obligation as well as a civic responsibility.
He said, “Filing of annual tax returns is not optional. It is a legal requirement under the Nigeria Tax Administration Act 2025. We encourage all Lagos residents earning taxable income to file early and accurately. Early and accurate filing not only ensures full adherence with statutory requirements but supports effective monitoring and forecasting, which are critical to Lagos State’s fiscal planning and long-term sustainability.”
He further noted that failure to file returns by the statutory deadline would attract penalties, interest, and other enforcement measures as prescribed by law.
“To enhance convenience and efficiency, all individual tax returns must be submitted electronically via the LIRS eTax portal at https://etax.lirs.net.The platform enables taxpayers to register, file returns, upload supporting documents, and manage their tax profiles securely from anywhere,” the statement added.
A survey carried out by THEWILL last week via telephone and in-person interactions indicated that most residents of Lagos have not adhered to the directive to submit their tax returns as the deadline neared. Among 486 adult participants from various local governments, professions, and age groups, only 21 individuals, accounting for approximately 4.3 percent, reported that they have successfully filed their tax returns this year. The remaining respondents either neglected this obligation or professed ignorance regarding the directive.
“What am I earning that I should bother myself with paying tax? Let them do whatever they like, after all, the money will go into their pockets because that has been the tradition,” said a middle-aged woman who identified herself as Mummy Tola and runs a hair-dressing salon in Akowonjo, Alimosho Local Government.
A school teacher in Surulere, Benson Akhigbe, stated that his employer withholds PAYE tax from his wages and submits it to the LIRS. He also mentioned that he possesses proof of the tax deductions from his earnings. He asserted that only individuals who do not remit PAYE should proceed to file their returns. Additionally, he confirmed that he engages in private home teachings.
Industry experts have warned that Lagos state government might descend heavily on defaulters after the deadline on March 31 through different means that would create panic and disrupt business activities. “Nigerian government is broke. This has also affected the states. This directive is being taken seriously by the states and the consequences might be severe,” said Tony Adiora, a tax consultant. “It might affect the services in other sectors such as electricity, issuance and renewal of vehicle and driver’s licences and many others,” he added.
The Special Adviser to the Executive Chairman of the Lagos State Internal Revenue Service (LIRS), Abideen Akande, recently explained that filing tax returns is not optional but a legal obligation required under both constitutional provisions and statutory laws
According to Akande, Nigeria operates a self-assessment tax system, which means individuals are expected to voluntarily declare their income for a given year. He explained that the assessment period now aligns with the calendar year, covering income earned between January and December.
Residents filing in 2026, for example, are expected to declare all income earned between January 1 and December 31, 2025. “Filing returns allows the tax authority to know how much you earned and how much tax you have already paid,” he said.
He stressed that many people speak about constitutional rights but often ignore constitutional obligations, noting that paying and declaring taxes is essential for any organised society.
“Everyone must file — even if you owe nothing,” Akande emphasised, stressing that every resident earning income in Lagos must file a tax return, even if they believe they owe no tax. For instance, individuals earning below the taxable threshold of about N840,000 annually may not be required to pay tax, but they must still declare their income.
A chartered accountant and tax consultant, Femi Ogunlowo, said filing is very important for several reasons. “First, filing enables aggregation of income. Tax authorities assess whether PAYE deductions accurately reflect the individual’s total tax exposure once all income streams are considered. Without filing, this aggregation does not happen properly.”
“Second, filing ensures the correct application of reliefs and allowances, including the consolidated relief allowance, which is granted once per tax year. When individuals change jobs mid-year or earn income from multiple sources, reliefs may be duplicated unintentionally, leading to under-taxation that surfaces later.”
Non-compliance results in severe penalties. Late submissions incur a fee of N100,000 for the first month and N50,000 for each subsequent month. Additionally, failing to permit tax authorities to utilise technology for auditing purposes incurs substantial fines. With the tax-payers’ Bank Verification Number (BVN) and National Identification Number (NIN) linked to all their accounts, tax authorities may request for bank statements to ascertain an individual’s actual income or a company’s total revenue over a specified period.
Adiora warned that the Lagos state government might not hesitate to apply the law regarding defaulters who failed to comply with the directive before the March 31, 2026 deadline. “This is a matter for concern as no one knows the extent it might impact business and individual activities because the law has to be applied.”
THEWILL reports that in accordance with Section 24(f) of the 1999 Constitution of the Federal Republic of Nigeria, Sections 13 &14(3) of the Nigeria Tax Administration Act 2025 (NTAA), every individual with taxable income is required to submit a correct return of total income from all sources for the preceding year (January 1 to December 31, 2025) within 90 days of the commencement of a new assessment year.
Not just Lagos State, this is applicable to all states in the country and the Federal Capital Territory (FCT).Former Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, now Minister of State for Finance, had issued a directive a that individuals in Nigeria are required to submit their annual tax returns by March 31 each year, regardless of whether their taxes have already been deducted at source through employment or not.
This directive stems from recent amendments under Nigeria’s tax administration laws, aiming to ensure accurate revenue tracking and reduce evasion. Oyedele emphasised that tax compliance was mandatory for both employers and individual taxpayers, and individuals have a responsibility to submit their self-assessment returns.
He stressed that employers must also submit their annual returns by January 31, covering employees’ emoluments and tax deductions.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
