C/River Agency Seals Basin Devt Authority, Federal Hospital Over N154m Debt

The Cross River Internal Revenue Service (CRIRS) on Friday sealed the Cross River Basin Development Authority and the Federal Neuropsychiatric Hospital, Calabar, over alleged unpaid tax liabilities totaling N154 million.

The enforcement action was carried out during a compliance drive to both federal institutions.

According to the service, the move followed failed efforts to recover the outstanding obligations after several notices were issued.

Speaking with journalists during the exercise, the director of Compliance at CRIRS, Mr Ayi Bassey, said the Basin Development Authority owed over N53 million from tax audit liabilities covering 2019 to 2021.

“We carried out every necessary administrative step to resolve the matter amicably, but they failed to respond,” he stated.

Bassey explained that the agency was served assessment, demand, and pre-distrain notices but did not respond.

“The assessment notice allowed 30 days for objection, while subsequent demand notices gave additional timelines for compliance,” he said, describing the sealing as a wake-up call to taxpayers that non-compliance would no longer be tolerated under the tax act.

The Federal Neuropsychiatric Hospital was also sealed over more than N101 million in Pay As You Earn (PAYE) and withholding tax liabilities for 2022 and 2023. The hospital received assessment notices in October 2025, followed by demand and pre-action notices in February and March 2026.

Bassey noted that after the hospital requested a detailed computation of liabilities, CRIRS provided it with 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 said.

Director of Legal Services and Enforcement, Mr Emmanuel Esira, said federal institutions are legally bound to remit taxes deducted from employees, and failure to do so attracts penalties and interest under Nigerian tax laws.

He confirmed the action was backed by Section 61 of the Nigerian Tax Administration Act, stating, “What we have done today is distrain. We have authority to seal premises and impound property until compliance is achieved.”

Esira clarified that medical services at the Neuropsychiatric Hospital were not disrupted, noting, “We avoided sensitive areas like the pharmacy and wards. The action targeted only administrative offices.”

He urged the affected institutions to engage the tax authority immediately and settle outstanding liabilities to avoid prolonged sanctions.