LIRS seals non-compliant businesses at Ikeja Computer Village
Traders at Ikeja Computer Village have entered a second week of business disruptions as the LIRS enforces tax compliance seals on non-compliant tech hubs, prompting calls for government intervention.
Traders at Ikeja Computer Village in Lagos entered a second week of business disruptions as the Lagos State Internal Revenue Service (LIRS) enforced tax compliance seals on non-compliant tech hubs. ICT merchant associations called for immediate government intervention to resolve tax assessment disputes digitally and reopen commercial operations.
The enforcement action reflects the LIRS’s efforts to increase tax compliance in Lagos. The state government has been under pressure to boost internally generated revenue, and the LIRS has been targeting businesses that have not complied with tax regulations. The sealing of businesses at Ikeja Computer Village is the latest in a series of enforcement actions.
This echoes the 2021 LIRS enforcement actions against businesses in Lagos, which also led to disruptions. The mechanism then was different, but the result was the same: a tension between tax enforcement and business continuity.
The winners: the LIRS, which has enforced tax compliance; and the Lagos State Government, which gains revenue. The losers: the traders, who face business disruptions; and the Nigerian economy, which suffers from reduced commercial activity.
Bottom Line: LIRS has sealed businesses at Ikeja Computer Village. The traders are calling for intervention. The question is whether the government will mediate or the enforcement will continue.