The Lagos State Internal Revenue Service (LIRS) has restated that January 31, 2026, is the firm statutory deadline for all employers of labour in Lagos to file their annual tax returns for the 2025 financial year. The reminder — officially issued in a statement by LIRS Executive Chairman Dr. Ayodele Subair — emphasises that compliance is a mandatory legal obligation under the Nigeria Tax Administration Act 2025 (NTAA) and warns that defaulting employers will face statutory sanctions if they fail to meet the deadline.
What Employers Must Do
Under the NTAA 2025, employers are required to submit detailed annual returns that include:
- All employee emoluments and compensation paid during the 2025 year,
- Taxes deducted and remitted from employee pay, and
- Payments to third parties such as vendors, service providers and consultants.
Dr. Subair underscored that these annual returns must be accurately completed and submitted on or before January 31, 2026, or employers risk fines and other penalties outlined in the tax law.
Fiscal Law and Compliance
According to Section 14 of the Nigeria Tax Administration Act 2025, filing the yearly tax return is not optional but a statutory obligation. Employers are required to disclose employee emoluments and the taxes withheld and remitted to the relevant authorities.
Dr. Subair explained that early and accurate filing supports effective revenue tracking, which is crucial to Lagos State’s fiscal planning and sustainability. He urged employers to treat tax compliance as a central business responsibility rather than a formality.
Digital Only: eTax Platform Mandatory
The LIRS has fully transitioned to digital filing, meaning that all tax returns must be submitted through the LIRS eTax platform; manual or paper submissions are no longer accepted. The eTax portal is described as a secure, user-friendly and accessible 24/7 system designed to streamline the filing process and make compliance easier for employers.
Employers are encouraged to ensure that all employees’ Tax Identification Numbers (TINs) are correctly recorded in the filings, noting that missing or invalid TINs could delay processing or attract follow-up from the agency.
Sanctions for Non-Compliance
Failure to meet the January 31 deadline could result in a range of penalties, as prescribed under the NTAA 2025. Employers who ignore the statutory obligation may face:
- Administrative penalties,
- Fines for late or inaccurate filings, and
- Potential escalation to legal enforcement actions if non-compliance persists.
The LIRS is taking a firm stance ahead of the deadline to ensure that Lagos State’s tax ecosystem remains robust and consistent with national tax laws.
Why This Matters
Timely filing of annual tax returns is critical for government revenue forecasting and budgeting. It also impacts employers’ ability to obtain or renew tax clearance certificates, which are often required for:
- Visa applications,
- Government contracts,
- Corporate regulatory compliance, and
- Financial audits or funding requests.
Non-compliance could therefore have consequences beyond fines.
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