C’ River Govt. seals Basin Authority, Neuro Psychiatric Hospital over N154m unpaid taxes

From Ene Asuquo, Calabar 

The Cross River Internal Revenue Service (CRIRS) has sealed the Cross River Basin Development Authority and Federal Neuropsychiatric Hospital, Calabar, over alleged unpaid tax liabilities

The State Government action was made known to journalists in Calabar during a compliance enforcement drive to both Federal institutions.

Addressing journalists during the exercise, Mr Ayi Bassey, Director of Compliance, CRIRS, said the enforcement followed failed efforts to recover outstanding tax obligations from both federal institutions.

He stated that the Basin Authority owed over N53 million arising from tax audit liabilities covering 2019 to 2021,adding that several notices, including assessment, demand and pre-distraint notices, were served on the agency without any response from its management.

He said, “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,” describing the action as a wake-up call to taxpayers, warning that tax enforcement under the tax act  would no longer tolerate non-compliance.

He also disclosed that the Federal Neuropsychiatric Hospital owed 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 detailed computation of liabilities, which CRIRS provided 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.

Also speaking, Mr Emmanuel Esira, Director of Legal Services and Enforcement, said federal institutions were legally bound to remit taxes deducted from employees.

Esira said failure to deduct or remit taxes constituted offences attracting penalties and interest under Nigerian tax laws.

He said 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,” he said.

He however 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 said.

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