In this edition of WeekendDigits@ITREALMS, REMMY NWEKE analyzes the LIRS’ "Power of Substitution," revealing how the 2025 Tax Act transforms banks and associates into enforcement agents within Nigeria’s tightening digital economy.
1. Preamble: The Digital Taxnet Tightens
For many Nigerians, the phrase "state power" usually evokes images of law enforcement on the streets. However, in the wake of the newly implemented Nigeria Tax Administration Act (NTAA) 2025, the Lagos State Internal Revenue Service (LIRS) is demonstrating that its reach now extends directly into the digital ledgers of financial institutions.
For many Nigerians, the phrase "state power" usually evokes images of law enforcement on the streets. However, in the wake of the newly implemented Nigeria Tax Administration Act (NTAA) 2025, the Lagos State Internal Revenue Service (LIRS) is demonstrating that its reach now extends directly into the digital ledgers of financial institutions.
WeekendDigits@ITREALMS gathered that the recent announcement that the state can "substitute" tax defaulters with third parties, including banks, friends, and business associates, has sent ripples through the socio-economic landscape, marking a new era of aggressive, data-driven revenue collection.
