The Lagos State Internal Revenue Service (LIRS) has given employers breathing room—but only just—announcing a one-week extension for annual tax return submissions as the agency prepares to wield stronger enforcement powers under recently enacted federal legislation.
The deadline, originally set for February 1, has been pushed to February 7, according to Dr. Ayodele Subair, Executive Chairman of LIRS, who made the announcement Friday in a statement from the revenue agency.
While the extension appears modest, tax observers say it signals a calculated approach by Lagos authorities: offering limited flexibility now while simultaneously preparing taxpayers for a harder line ahead.
“Employers must give priority to the timely filing of their annual returns, and compliance should be embedded as a routine business practice,” Dr. Subair said in the statement, making clear that the grace period should not be mistaken for leniency.
The chairman emphasized that the extension was granted specifically to allow employers time to ensure accuracy in their submissions—a move designed to reduce errors that could trigger penalties or additional scrutiny once enforcement intensifies.
LIRS has maintained its strict requirement that all annual returns be submitted electronically through the agency’s eTax platform at https://etax.lirs.net. Manual filings have been completely discontinued, reflecting the service’s ongoing digitization drive aimed at improving transparency and reducing processing delays.
Dr. Subair urged employers to verify that Tax Identification Numbers (TaxID) for all employees are accurately recorded in their submissions and encouraged those needing assistance to visit any LIRS office or contact the agency through official channels.
The deadline extension comes against the backdrop of significant developments in Nigeria’s tax enforcement landscape. Just last week, LIRS announced plans to activate what it describes as its “power of substitution”—a statutory authority that allows the agency to recover outstanding tax debts by directing third parties to intercept funds belonging to defaulting taxpayers.
This mechanism, codified under Section 60 of the Nigeria Tax Administration Act (NTAA) 2025, enables tax authorities to compel banks, customers, or any entity holding money for a tax defaulter to remit those funds directly to LIRS in settlement of unpaid liabilities.
According to the revenue service, the power applies only to tax assessments that have become final and remain unpaid beyond their due date. LIRS specified that it covers Personal Income Tax, Capital Gains Tax, Stamp Duties, and Withholding Tax—all areas under the agency’s jurisdiction.
The federal government recently commenced the implementation of the NTAA, although the rollout has been overshadowed by public controversy. Critics have raised concerns over alleged discrepancies between the bill as passed by the National Assembly and the gazetted version, fueling debate about procedural integrity and the scope of the law’s provisions.
Tax policy analysts view the one-week extension as part of a broader strategy by LIRS to balance taxpayer support with stricter compliance enforcement. By granting a brief reprieve while simultaneously publicizing new recovery powers, the agency appears to be sending a dual message: cooperate now, or face consequences later.
The timing is particularly significant for businesses operating in Lagos, Nigeria’s commercial hub, and the state generating the highest internally generated revenue in the country. Employers who miss the February 7 deadline could find themselves not only subject to penalties but also targeted under the newly operationalized substitution powers if outstanding liabilities accumulate.
LIRS has positioned the power of substitution as a lawful and efficient tool for tax recovery, though its practical application will likely be closely watched by the business community and legal experts in the coming months.
For now, employers across Lagos have seven more days to get their house in order—a window that tax officials have made clear will not be extended again.
WHAT YOU SHOULD KNOW
Lagos employers now have until February 7 to file annual tax returns—but this brief extension comes with a warning. The Lagos State Internal Revenue Service is preparing to enforce the new Nigeria Tax Administration Act 2025, which gives them power to seize funds directly from your bank accounts or customers to recover unpaid taxes.
File accurately through the eTax platform before the deadline, ensure all employee tax IDs are correct, and settle any outstanding tax liabilities—because after this grace period, LIRS will have legal authority to collect what you owe without going through you first.
