BREAKING: Lagos State Shuts Down 34 Companies, Hospitality Businesses Over Tax Debts

By LOVETH AZODO, Lagos

In a bid to recover substantial unpaid taxes, the Lagos State Internal Revenue Service (LIRS) has taken stringent actions by closing down 34 corporate organizations. These companies failed to remit their employees’ Personal Income Taxes and, in the case of hospitality sector operators, neglected to remit Consumption Taxes to the Lagos State Government.

This development was confirmed in an official statement issued by Monsurat Amasa-Oyelude, Head of Corporate Communications at LIRS, which was made available on Tuesday. The statement underlined the government’s resolve to enforce tax compliance effectively.

The list of affected companies includes well-known names such as NTS Nigeria Ltd., Med-In Hospital & Pharma Services Ltd., Danvic Petroleum Int’l Ltd., Business Intelligence Technology, Avaya Nigeria Ltd., Gladstone Tech Ltd., Courier Plus Services Ltd., Kurioucity Ltd., Medilag Ventures Ltd., Future Oilfields, and Seven Six & Ten Limited.

During the same tax enforcement operation, 23 hotels, restaurants, and event facilities also faced closure for their failure to deduct and remit Consumption taxes. These establishments encompass Blitz Suites & Hotel, Offshoroomz Hotel, God’s Grace Hotel, De Orange Place Ltd., De Santos Hotel, Kentade Hotel Limited, Chamcee, Chelsea Suites, Falode Hotels, High Climax Hotel, Chez Moi Apartment, Excellence Hotel, Bereans Venture (Tantalizer Ebute Metta), La Avril Hotel & Suites, De Orange Place Ltd., Milaco Guest House, New World Inn, Model Motels Ltd, Rely Maritime Ltd, 4 Seasons Hotel, Dream Land Hotel, 343 North Restaurant and Lounge, and Jade Palace Chinese Restaurant.

Seyi Alade, the Director of Legal Services at LIRS, while addressing the ongoing state-wide tax law enforcement exercise in Lagos, reported that these businesses collectively owed more than ₦356.12 million. Their actions have led to substantial revenue loss for the state government.

Alade revealed that, in the past, LIRS had adopted a more lenient approach to promote voluntary tax compliance. However, certain companies, restaurants, hotels, and event centers deliberately evaded their tax obligations. This has prompted the Service to reinvigorate its enforcement efforts, focusing on these entities.

The primary goal remains securing compliance in the remittance of Consumption and Personal Income taxes, which allows the Lagos State Government to fund essential projects and initiatives intended to improve the well-being of its residents.

Alade emphasized that these companies deducted Personal Income taxes from their employees’ salaries each month and levied consumption taxes on goods and services purchased by customers. However, a number of businesses chose to withhold these payments, diverting the funds for their own benefit.

Alade further warned that failing to file tax returns or engaging in tax evasion are considered criminal offenses, carrying potential financial penalties and even custodial sentences upon conviction. Some high-net-worth individuals and companies who failed to file their Returns are currently facing legal proceedings. Bench Warrants have been issued by the courts for some taxpayers in this category, leading to three arrests so far—Platinum Apartments & Suites, The Moonlight Place Enterprises, and Jezreel Nursery and Primary School.

Alade concluded by asserting that the enforcement exercise would be ongoing, with all delinquent companies, hotels, restaurants, and individuals in Lagos State subject to scrutiny if they do not regularize their tax positions promptly or fail to adhere to the existing tax laws.