Ayodele Subair: LIRS Focuses on Encouraging Voluntary Tax Compliance Rather Than Immediate Enforcement

Ayodele Subair, the Executive Chairman of the Lagos State Internal Revenue Service (LIRS), has stated that the agency is placing a strong emphasis on improving voluntary tax compliance over enforcing penalties against tax defaulters. Despite the considerable amount of outstanding tax liabilities present within the state, Subair expressed a commitment to educate and engage taxpayers rather than immediately resorting to enforcement actions.

During a recent interview with ARISE NEWS, Subair remarked, "Our focus is on increasing voluntary compliance, which currently remains very low, hence our poor tax-to-GDP ratio. It's a global issue; people around the world generally resist paying taxes. Our role is to offer continuous education and awareness regarding tax obligations. When necessary, we will enforce the law, but our primary goal is voluntary compliance."

He further elaborated, although the new policy took effect on January 1, 2026, the LIRS is dedicated to thoroughly exploring all efforts to promote voluntary tax compliance. Acknowledging the existing backlog, he expressed understanding toward those reluctant to pay but underscored the importance of patience in encouraging compliance. Subair pointed out the need for a human touch in the interactions between tax authorities and the public, balancing legal technicalities with the realities facing taxpayers.

Subair stated, "We will take our time as we continue educating the public. The recent notice issued serves to promote awareness and inform citizens of their legal responsibilities. While we enforce the laws, we also need to make sure people understand them. Our ultimate objective is to foster compliance voluntarily, which is preferable over enforcement actions."

In response to inquiries about potential lawsuits from individuals and corporations with overdue liabilities, Subair acknowledged a substantial opportunity for collection but stressed that any enforcement measures would not be rushed. He asserted that enforcement options, such as third-party substitution, remain lawful avenues available if required, yet he reiterated his stance against forcing compliance.

Regarding possible legal disputes stemming from enforcement actions, he commented, "Disputes are to be expected. Taxpayers often argue that our demands may seem excessive. Challenges will always emerge, regardless of the existing legal framework. In a democracy like Nigeria, the rule of law prevails, and we respect legal proceedings. We do not oppose those who wish to contest our assessments in court, and we anticipate ongoing litigation."