Don condemns KW-IRS business shutdowns over tax disputes
A university don has condemned the indiscriminate sealing of businesses by the Kwara State Internal Revenue Service, calling the approach counterproductive to economic growth and investor confidence.
A university don has condemned the indiscriminate sealing of businesses by the Kwara State Internal Revenue Service (KW-IRS), describing the approach as counterproductive to economic growth and investor confidence. The don, who spoke on condition of anonymity, said the agency’s heavy-handed enforcement tactics were creating an environment of fear and uncertainty for business owners in the state.
The KW-IRS has recently intensified its enforcement operations, sealing several businesses over alleged tax infractions. The don argued that while tax compliance is necessary, the agency’s approach was alienating business owners and discouraging investment. “The government must find a balance between enforcement and encouragement,” he said.
The criticism reflects a broader debate about tax enforcement in Nigeria. State governments are under pressure to increase internally generated revenue, but aggressive enforcement can undermine business confidence and drive informal economic activity. The Kwara experience offers lessons for other states seeking to expand their tax base.
This echoes the 2010s tax enforcement debates, which also saw tensions between revenue authorities and business owners. The mechanism then was different, but the result was the same: a recognition that tax enforcement must be balanced with business facilitation.
The winners: the Kwara State Government, which may collect more revenue in the short term. The losers: Kwara business owners, who face increased enforcement pressure; and the state’s investment climate, which suffers from perceived hostility to business.
Bottom Line: A university don says Kwara’s tax enforcement is counterproductive. The question is whether the state will listen or continue to shut down businesses.