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EXPLAINER: What Lagos Residents Need To Know Before March 31 Tax Return Deadline

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With the March 31 deadline for filing individual annual tax returns approaching, the Lagos State Internal Revenue Service (LIRS) has clarified who must file, what documents are required, and the penalties for non-compliance.

Contents

What Is an Individual Annual Tax Return?
Is Filing Tax Returns Mandatory?
What Is the Deadline?
What Are the Penalties for Not Filing?
Do Employees Who Pay PAYE Still Need to File?
What If You Earned Little or No Income?
What Should First-Time Filers Do?
Do Freelancers and Content Creators Need to File?
What About Retirees or People Who Changed Jobs?
Does Filing Mean You Will Pay More Tax?
Is There a Cost for Filing?
What If You Make a Mistake While Filing?
How to Avoid Tax Scams
Why Tax Compliance Matters

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In a recent interview, the Director of Tax Audit at LIRS, Foluso Mustapha, explained that many taxpayers misunderstand the process—especially employees whose taxes are already deducted through Pay-As-You-Earn (PAYE).

Here is a breakdown of the key issues taxpayers in Lagos should understand.

What Is an Individual Annual Tax Return?

An individual annual tax return is a formal declaration submitted to the tax authority showing all income earned in the previous year, along with deductions and tax reliefs claimed.

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According to LIRS, the requirement applies to all taxable residents of Lagos State.

This includes:

Salaried employees

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Business owners

Freelancers and gig workers

Individuals with multiple sources of income

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Mustapha explained that the return allows the tax authority to determine a taxpayer’s accurate tax position.

An individual tax return is a formal declaration expected to disclose all income, deductions, and reliefs applicable to the taxpayer for the preceding year,” he said.

Is Filing Tax Returns Mandatory?

Yes. Filing an annual tax return is a legal requirement for all taxable residents in Lagos State.

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Even Lagos residents who do not owe additional tax must still submit their returns.

READ ALSO:Tax: Enugu Hits N406bn IGR In One Year, Projects N870bn In 2026

Filing is not optional. It is a statutory obligation imposed on every taxable individual resident in Lagos State,” Mustapha said.

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When Is the Deadline?

The deadline for filing individual tax returns is March 31 every year.

Returns filed after the deadline may attract financial penalties.

What Are the Penalties for Not Filing?

Failure to file tax returns can attract significant penalties:

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₦100,000 for the first month of default

₦50,000 for each additional month of delay

In severe cases, LIRS may invoke a legal recovery measure known as “power of substitution.”

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This allows the tax authority to recover unpaid taxes through third parties holding funds on behalf of the taxpayer, such as:

Banks

Business partners

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Tenants paying rent

Mustapha noted that this measure is only applied after tax liability has been properly established and the taxpayer fails to comply.

Do Employees Who Pay PAYE Still Need to File?

Yes.

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Although employers deduct taxes under the Pay-As-You-Earn (PAYE) system, employees must still file their annual tax returns.

LIRS explains that PAYE deductions are advance tax payments, not a replacement for filing.

Employees are expected to declare other income sources such as:

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Rental income

Investments

Side businesses or freelance work

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“PAYE is a withholding mechanism and not a substitute for filing obligations,” Mustapha said.

What If You Earned Little or No Income?

Taxpayers who earned little or no income during the year are still required to file.

In such cases, they can submit what is known as a “nil return,” indicating that no tax is payable.

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Documents Required for Filing

To complete their tax returns, individuals are advised to prepare the following documents:

READ ALSO:Why Nigeria’s New Tax Law May Not Succeed – CPPE

Salary or payroll records

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Bank statements

Financial statements (for business owners)

Rent receipts

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Investment income records

Evidence of deductible expenses

These documents help determine the taxpayer’s correct tax liability.

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What Should First-Time Filers Do?

First-time taxpayers must:

Obtain a Tax Identification Number (TIN)

Gather records of income earned during the year

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Identify deductible expenses

Complete the tax return form on the LIRS portal

The process applies to employees, freelancers, business owners, and gig workers.

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Do Freelancers and Content Creators Need to File?

Yes.

LIRS says income earned through digital platforms or independent work must also be declared.

This includes income from:

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Freelance services

Online businesses

Brand partnerships

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Digital platforms and content creation

What About Retirees or People Who Changed Jobs?

Retirees are not automatically exempt.

While pension income may be tax-free, retirees must still declare income from other sources such as:

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Rental property

Investments

Business activities

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Individuals who changed jobs within the year must also file returns to reconcile income received from multiple employers.

READ ALSO:How To Calculate Your Taxable Income

Does Filing Mean You Will Pay More Tax?

Not necessarily.

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According to LIRS, filing a tax return simply determines a taxpayer’s actual tax position.

Filing a return does not create new tax. It simply establishes your correct tax position based on income actually earned,” Mustapha explained.

Is There a Cost for Filing?

No.

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Submitting annual tax returns to LIRS is free of charge, and taxpayers can complete the process online through the tax portal.

What If You Make a Mistake While Filing?

Taxpayers who discover errors after submitting their returns can correct them by filing an amended return or voluntarily disclosing the mistake.

How to Avoid Tax Scams
LIRS also warned residents to be cautious of individuals impersonating tax officials.

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Taxpayers should avoid making payments through unofficial channels or sharing sensitive information with unverified individuals.

Suspicious messages or requests should be reported through official LIRS channels.

Why Tax Compliance Matters
Mustapha emphasised that taxes remain a major source of funding for development in Lagos State.

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According to him, tax revenues support infrastructure projects, healthcare services, education, and transportation across the state.

Tax compliance is not merely an administrative function; it is the financial lifeblood of Lagos State,” he said.

He added that voluntary compliance enables the government to expand public services and improve the quality of life for residents.
(TRIBUNE)

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UK Court Closes Diezani Trial As Jury Prepares Verdict

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The defence and prosecution have closed their cases in the ongoing trial of former Nigerian Minister of Petroleum Resources, Diezani Alison-Madueke, at the Southwark Crown Court in the United Kingdom, with a jury now set to deliver its verdict later this week.

Alison-Madueke is standing trial alongside oil executive Olatimbo Ayinde and her brother, Doye Agama, on a five-count charge bordering on alleged bribery. All three defendants have pleaded not guilty.

British prosecutors allege that the former minister received bribes in the form of luxury items and high-value properties from oil industry actors seeking favourable treatment in the award of oil contracts during her tenure between 2010 and 2015.

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The prosecution maintains that such benefits were improperly received and argues that there is no documentary evidence supporting claims of reimbursement or legitimate financial transactions backing the alleged transfers.

READ ALSO:Court Orders Final Forfeiture Of UK Property Linked To Useni, Ozekhome

In his closing submissions, defence counsel Jonathan Laidlaw accused the prosecution of failing to charge alleged bribe givers and relying on what he described as incomplete and unreliable evidence.

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He questioned the handling of evidence from a 2015 raid on Alison-Madueke’s Abuja residence, alleging procedural irregularities, including the absence of key officials during the operation and lack of photographic records of items in their original locations.

Laidlaw further argued that critical documents that could support the defence case—such as records relating to reimbursements and official ministerial duties—were missing. He also faulted the prosecution’s reliance on evidence linked to Nigeria’s Economic and Financial Crimes Commission (EFCC), while challenging its rejection of parts of the same material in relation to co-defendant Ayinde.

He also disputed claims that official travel and financial records relating to the former minister were unavailable, describing the prosecution’s position as inconsistent.

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READ ALSO:UK Rolls Out Digital Visit Visas For Nigerians

Responding, lead prosecutor Alexandra Healy maintained that oil executives provided improper benefits to the former minister while their companies benefited from lucrative state contracts. She argued that such arrangements were incompatible with public office and unsupported by any documentary evidence of reimbursement.

Healy further referenced a £1 million payment linked to businessman Benedict Peters, describing the use of intermediary structures as a deliberate attempt to conceal the nature of the transaction.

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She also noted that Alison-Madueke had been aware of the investigation for nearly a decade.

With both sides having completed their submissions, the jury is expected to return its verdict later this week.

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Sleep Timing Irregularity Could Double Risk Of Heart Attack, Experts Warn

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Experts have warned that going to bed at different times each night, particularly during midlife, could be an early warning sign of future heart problems.

New research from the University of Oulu found a strong link between irregular bedtimes and an increased risk of major cardiovascular events, especially among people who spend less than eight hours in bed each night.

According to the study, individuals whose sleep schedules varied widely and whose time in bed was under eight hours faced roughly twice the risk of serious heart-related events compared with those who maintained more regular routines.

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In contrast, irregular wake-up times did not show a clear association with cardiovascular problems.

READ ALSO:Eating Takeout Food Often May Increase Heart Disease Risk — Study

Major cardiovascular events examined in the study included conditions requiring specialised medical care, such as heart attack and ischaemic stroke.

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The research, published in BMC Cardiovascular Disorders, followed 3,231 individuals born in northern Finland in 1966. Their sleep habits were monitored over a one-week period at age 46, while their health outcomes were tracked for more than a decade using healthcare register data.

Researchers measured sleep duration and timing using activity monitors that recorded how long participants remained in bed. The findings pointed to bedtime consistency as a particularly important factor for heart health.

Laura Nauha, a postdoctoral researcher at the University of Oulu, explained that earlier studies had already linked irregular sleep patterns to cardiovascular risks.

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READ ALSO:Sleeping Late Can Trigger Heart Disease Later In life, Scientists Warn

However, she noted that this study is the first to show that variability in bedtime, wake-up time, and the midpoint of the sleep period are independently associated with major cardiovascular events.

According to Nauha, everyday routines play a major role in shaping long-term heart health.

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Maintaining a regular sleep schedule is one factor that most of us can influence,” she said.

“Our findings suggest that the regularity of bedtime, in particular, may be important for heart health. It reflects the rhythms of everyday life and how much they fluctuate,” Nauha added.
(Nigerian Tribune)

 

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NMA Threatens N1bn Suit Against EFCC Over Alleged Assault On UUTH Professor

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The Nigerian Medical Association, NMA, Akwa Ibom State Council, has concluded plans to initiate a one billion naira suit against the Economic and Financial Crimes Commission, EFCC, over the alleged assault of its member, Professor Eyo Ekpe, a Professor of Cardiothoracic Surgery at the University of Uyo Teaching Hospital, UUTH.

This was among the 10 resolutions reached by the body at the end of its emergency virtual meeting on Tuesday in respect of the arrest and alleged assault of Professor Ekpe by the commission.

Recall that EFCC operatives, on the grounds of authenticating a medical report presented by a suspect, were said to have invaded the hospital and subsequently arrested Prof. Ekpe under demeaning circumstances.

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It was gathered that when the professor was accosted by the official, he told him that the office was already processing the request. However, the official allegedly went outside, mobilised other colleagues, and returned to hound the professor away after allegedly beating him and making him cry in public.

READ ALSO:EFCC Arraigns Two Over Alleged N8.9m Investment Fraud In Anambra

At a press conference held at Doctors’ Mess, Udoudoma, Uyo, on Wednesday, the NMA Chairman, Prof. Aniekan Peter, who also suffered during the crisis, said it was a slap on the integrity of the NMA as a body to allow anyone assault their member, not to talk of a professor who was only carrying out his lawful duties of saving lives and imparting knowledge.

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Reading a communiqué endorsed by the chairman and the secretary, Dr Ighorodje Edesiri, respectively, the assistant secretary of the union expressed dismay that there has been a recurring pattern of harassment and assault of medical professionals and members of the association by security agencies within the state, adding that the union would no longer condone such acts.

The union, while observing that there was no formal invitation extended to Prof. Ekpe or the leadership of the NMA before the incident, described the act as barbaric, degrading, inhuman, and a gross violation of the sanctity of the hospital environment, thereby putting staff and patients at risk and undermining the dignity of the medical profession.

READ ALSO:EFCC Arrests Edo Traditional Ruler, One Other For Alleged fraud

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The union, which has since embarked on an indefinite strike, said members would not return to work unless the EFCC tenders an apology to the assaulted professor, chairman, and members of the NMA, and identifies and prosecutes the officials who carried out the operation.

The union further stated that it has resolved not to offer any medical services to EFCC officials or their relatives, as they have chosen the path of cruelty against their member.

The communiqué read in part: “We observed that Prof. Eyo Ekpe was apprehended within the premises of UUTH by masked EFCC operatives who physically assaulted him, beat him to the point of bleeding, and handcuffed him alongside other doctors and hospital staff who attempted to intervene.

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READ ALSO:EFCC Arraigns Ex-NRC MD Over Alleged $385,000, N165m Fraud

Prof. Peter, Akwa Ibom NMA chairman, was shoved and exposed to teargas when he approached the scene seeking clarification from the operatives. Hospitals are sacred environments meant for the preservation of life and should not be subjected to violent invasions by security agencies.

“We shall institute legal action against the EFCC with a demand for damages in the sum of one billion naira (N1,000,000,000) for the physical, emotional, professional, and institutional damages caused. Congress further emphasised that this action shall serve as a deterrent against future harassment, intimidation, or assault of medical practitioners by any security agency. The association reaffirmed its commitment to protecting the welfare, dignity, and safety of all its members.”

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