News

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

Published

6 months ago

March 14, 2026

Editor

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

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.

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

This includes:

Salaried employees

Business owners

Freelancers and gig workers

Individuals with multiple sources of income

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.

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

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

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:

₦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.”

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

Banks

Business partners

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.

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:

Rental income

Investments

Side businesses or freelance work

“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.

Documents Required for Filing

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

Salary or payroll records

Bank statements

Financial statements (for business owners)

Rent receipts

Investment income records

Evidence of deductible expenses

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

What Should First-Time Filers Do?

First-time taxpayers must:

Obtain a Tax Identification Number (TIN)

Gather records of income earned during the year

Identify deductible expenses

Complete the tax return form on the LIRS portal

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

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:

Freelance services

Online businesses

Brand partnerships

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:

Rental property

Investments

Business activities

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

Does Filing Mean You Will Pay More Tax?

Not necessarily.

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.

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.

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.

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)

News

Six Corps Members Receive N10m Grants To Boost Agribusiness

Published

2 days ago

September 22, 2026

Editor

Six members of the National Youth Service Corps (NYSC) have received a total of N10 million in grants to expand their agribusiness ventures under the Farmers for the Future Programme.

The programme was organised on Monday by the British American Tobacco Nigeria Foundation (BATNF) in collaboration with the NYSC to encourage young Nigerians to embrace agriculture and develop sustainable businesses.

Presenting the cheques to the beneficiaries in Abuja, the NYSC Director-General, Brigadier General Olakunle Nafiu, urged Corps members to maximise the opportunities provided by the service year by venturing into commodity marketing and other viable businesses.

Nafiu said agribusiness remained a viable avenue for young people to build sustainable enterprises, create employment and generate wealth.

He also stressed the importance of value addition to the success and sustainability of business ventures, while commending BATNF for placing Nigerian youths at the centre of its entrepreneurship initiatives through value-chain development, employment creation and its partnership with the NYSC.

“I charge you to spread the news around. We have seen the outcome, and it is a good idea,” he said.

The beneficiaries are Dominic Olufemi (FC/25C/1143), who received N3 million; Temitope Adewole (ED/26A/2251), N2 million; Abdulwaheed Bala (ED/25B/1402), N2 million; Olanike Mayungbe (OG/26B/1037), N1 million; Kingsley Udoeyen (KG/26A/1735), N1 million; and Lorember Lorsue (JG/25B/1742), N1 million.

Speaking on the selection process, the Acting Director, Skills Acquisition and Entrepreneurship Development (SAED), Mrs Winifred Shopeka, said the programme began with an online registration portal through which Corps Members engaged in agribusiness submitted their business plans.

She said nearly 3,000 Corps members applied and underwent a rigorous selection process that produced 20 finalists.

According to her, the finalists participated in a boot camp and a final pitching session, which produced the 10 best presenters before the six ultimate winners were selected.

Shopeka said the beneficiaries had also been mentored and attached to established market operators to assist them in marketing their products.

She added that Corps Members who did not make the final stage of the competition were also trained by BATNF.

The BATNF Team Lead, Mr Oludare Odusanya, congratulated the beneficiaries and urged Corps Members engaged in agribusiness to master the fundamentals and acquire the knowledge and skills necessary to succeed.

“We are happy with our collaboration with the NYSC, and it will continue,” he said.

Odusanya explained that BATNF was an independent organisation established to contribute to poverty reduction in Nigeria through sustainable agricultural practices and other interventions.

He said the Farmers for the Future Programme was instituted in collaboration with the NYSC to encourage Corps Members to venture into agribusiness and become job creators.

He added that the beneficiaries would be attached to mentors who would guide them towards achieving success in their respective businesses.

According to him, the programme has, since its inception, continued to enhance the entrepreneurial capacity of Corps Members.

News

CBN Reduces Interest Rate To 23%

Published

2 days ago

September 22, 2026

Editor

The Central Bank of Nigeria (CBN) on Tuesday announced the reduction of the interest rate, also known as Monetary Policy Rate (MPR) to 23 percent.

Briefing the media in Abuja, the Governor of the CBN, Mr. Olayemi Cardoso, said at the 307th MPC meeting held on September 22, 2026 agreed the resetting of the MPR and recaliberation of the monetary policy market.

According to Cardoso, the committe is satisfied with the disinflation progress, adding that members noted stable banking sector following successful recapitalisation.

Meanwhile, according to Nigerian Tribune, reports that that the MPC, at its 306th meeting in July 2026, disclosed its resolution to retain the interets at 26.5 percent.

According to the Governor of the CBN, Olayemi Cardoso, “the Committee’s decision to maintain the current policy stance followed a thorough assessment of the balance of risks. Although headline inflation moderated marginally in June 2026, global uncertainties have heightened, due mainly to the renewed hostilities in the Middle East.

“In view of the evolving developments, maintaining a cautious monetary policy stance remains appropriate. In arriving at its decision, the Committee noted the recent resurgence of hostilities in the Middle East, with particular attention to its spillover effects on global energy prices and the potential pass-through to domestic inflation.”

News

NURTW: KWAM1 Settles Long-time Rift Between MC Oluomo, Tafa Sego

Published

2 days ago

September 22, 2026

Editor

Nigerian Fuji musician, Wasiu Ayinde Marshal, popularly known as KWAM1, has brokered a peace deal between the National Union of Road Transport Workers (NURTW) National President, Musiliu Akinsanya, popularly known as MC Oluomo, and the Lagos State Chairman of the union, Mustapha Adekunle, aka Tafa Sego.

The reconciliation took place at Ojusagbola in Ijebu, Ogun State, where several NURTW chieftains gathered for the meeting.

The development was announced on Tuesday on KWAM1’s digital media page on Instagram, alongside photographs from the meeting.

According to the post, the two union leaders have resolved their differences after years of strained relations.

“After years of an age-long rift, MC Oluomo and Tafa Sego have finally settled their differences. And from what we know now, this is final,” the post said.

The musician was said to have intervened as the Mayegun of Yorubaland, with the aim of bringing an end to the longstanding disagreement between the two NURTW figures.

“K1 acted in his role as the Mayegun of Yorubaland by seeking an end to the long-standing rift, once and for all,” it said.

The post also described the meeting as a significant step beyond previous public displays of reconciliation.

“This time, it was not just another handshake for the cameras. The two old friends and colleagues came together at Ojusagbola, with King Wasiu Ayinde Marshal (K1) playing the peacemaker.”

Both MC Oluomo and Tafa Sego were reported to be pleased with the outcome of the intervention.

“Both parties are delighted about the new development,” the post said.

The two men had previously been allies and prominent figures within the Lagos NURTW before their relationship became strained amid disagreements linked to leadership of the union in the state.