With less than two weeks remaining before the statutory deadline, the Lagos State Internal Revenue Service has issued a firm reminder to all employers operating within the state: annual tax returns for the 2025 financial year must be filed by January 31, 2026, or face penalties under Nigeria’s newly enacted tax legislation.
The directive, delivered on Thursday by LIRS Executive Chairman Dr. Ayodele Subair, marks one of the first major compliance deadlines under the Nigeria Tax Administration Act 2025, which has introduced stricter enforcement mechanisms and standardized filing requirements across the country.
Dr. Subair’s statement underscores a significant shift in tax administration. Under Section 14 of the Nigeria Tax Administration Act 2025, employers are now legally mandated to submit comprehensive annual returns detailing all employee compensation, taxes withheld, and payments made to contractors, vendors, and service providers during the preceding financial year.
“This is not a request—it is a constitutional and statutory obligation,” Dr. Subair said in the statement. “Failure to comply will attract administrative penalties as prescribed under the new tax law.”
The warning comes as authorities seek to tighten revenue collection mechanisms in Nigeria’s commercial capital, where tax compliance has historically been inconsistent despite Lagos generating a substantial portion of the nation’s internally generated revenue.
In a move signaling the state’s push toward full digitization of tax administration, the LIRS has made clear that manual submissions are no longer accepted. All employers must now file exclusively through the agency’s eTax platform at https://etax.lirs.net.
According to Dr. Subair, the transition to mandatory electronic filing aims to “simplify and standardize tax administration processes” while enhancing efficiency, transparency, and revenue tracking capabilities. The platform operates around the clock and has been designed to accommodate the filing needs of businesses of all sizes.
“The eTax platform is secure, user-friendly, and accessible 24/7,” Dr. Subair noted. “We have invested significantly in this infrastructure to make compliance as seamless as possible for employers.”
The filing requirements are extensive. Employers are expected to provide detailed breakdowns of:
- All salaries, wages, bonuses, and other forms of employee compensation paid during 2025
- Taxes are deducted from employee earnings and remitted to tax authorities
- Payments made to independent contractors, consultants, vendors, and service providers
- Confirmation that all applicable taxes for the year have been fully remitted
A critical component of the process involves ensuring that every employee’s Tax Identification Number is accurately captured. Dr. Subair emphasized that employees without a TaxID must generate one immediately to prevent processing delays that could jeopardize their employer’s compliance status.
While Dr. Subair’s statement did not specify the exact penalties employers might face for missing the deadline, the Nigeria Tax Administration Act 2025 grants tax authorities significant enforcement powers, including the ability to impose substantial administrative fines and other sanctions.
Tax experts say the new law represents a departure from the relatively lenient enforcement regime of previous years, with federal and state authorities now armed with clearer legal frameworks to pursue non-compliant entities.
“Employers must prioritize the timely filing of their annual income tax returns,” Dr. Subair stated. “Compliance should be part of our everyday business practice. Early and accurate filing not only ensures adherence to the law as required by the Nigerian Constitution but also supports effective revenue tracking, which is essential to Lagos State’s fiscal planning and sustainability.”
Recognizing that some businesses may face challenges navigating the new requirements, the LIRS has made support services available. Employers requiring assistance can visit any of the agency’s offices across Lagos or access help through official support channels.
With January 31 fast approaching, the pressure is now on businesses across Lagos—from small enterprises to multinational corporations—to ensure their filings are complete, accurate, and submitted on time. For many, this deadline will serve as the first real test of compliance under Nigeria’s new tax administration framework.
WHAT YOU SHOULD KNOW
All Lagos employers have until January 31, 2026—just days away—to file their 2025 tax returns or face penalties under Nigeria’s new Tax Administration Act 2025.
Filing must be done exclusively online through the LIRS eTax platform at https://etax.lirs.net.
Manual submissions are no longer accepted. Employers must report all employee salaries, taxes withheld, and payments to contractors. Ensure every employee has a Tax Identification Number to avoid delays.
