The Cross River Internal Revenue Service (CRIRS) has sealed the Cross River Basin Development Authority and the Federal Neuropsychiatric Hospital in Calabar over alleged unpaid tax liabilities totaling N154 million. The service disclosed this on Friday during a compliance enforcement drive targeting both federal institutions.
Details of the Tax Liabilities
Speaking to journalists during the exercise, Mr. Ayi Bassey, Director of Compliance at CRIRS, explained that the enforcement action followed failed efforts to recover outstanding tax obligations from both institutions. According to Bassey, the Basin Authority owes over N53 million arising from tax audit liabilities covering the period from 2019 to 2021. He noted that several notices, including assessment, demand, and pre-distraint notices, were served on the agency, but no response was received from its management.
“We carried out every necessary administrative step to resolve the matter amicably, but they failed to respond. The assessment notice allowed 30 days for objection, while subsequent demand notices gave additional timelines for compliance,” Bassey said. He described the action as a wake-up call to taxpayers, warning that tax enforcement under the tax act would no longer tolerate non-compliance.
Bassey also disclosed that the Federal Neuropsychiatric Hospital owes over N101 million in Pay As You Earn (PAYE) and withholding tax liabilities for 2022 and 2023. The compliance director said the hospital received assessment notices in October 2025 and further demand and pre-action notices in February and March 2026. He explained that the hospital later requested a detailed computation of liabilities, which CRIRS provided within a seven-day timeline for reconciliation. “Over one month passed after the computation was sent, yet there was no response before today’s enforcement exercise,” he added.
Legal Basis for Enforcement
Mr. Emmanuel Esira, Director of Legal Services and Enforcement, emphasized that federal institutions are legally bound to remit taxes deducted from employees. He stated that failure to deduct or remit taxes constitutes offenses that attract penalties and interest under Nigerian tax laws. Esira confirmed that the sealing exercise was backed by Section 61 of the Nigerian Tax Administration Act.
“What we have done today is distraint. We have authority to seal premises and impound property until compliance is achieved,” Esira said. He clarified that medical services at the Neuropsychiatric Hospital were not disrupted during the operation. “We avoided sensitive areas like the pharmacy and wards. The action targeted only administrative offices,” he noted.
Esira urged affected institutions to immediately engage the tax authority and settle outstanding liabilities to avoid prolonged sanctions. The CRIRS remains committed to enforcing tax compliance across all sectors, including federal government agencies operating within the state.
