The Cross River State Internal Revenue Service (CRIRS) has launched legal proceedings against various tax defaulters to recover owed taxes surpassing N11 billion.
This enforcement initiative focuses on wealthy individuals and corporate entities that have reportedly disregarded numerous notifications from the tax authority, failing to fulfill their mandated tax responsibilities to the state government.
In a statement shared on Facebook on Wednesday, the agency announced that its Legal Services and Enforcement Department is spearheading this legal undertaking to enhance tax compliance and boost the internally generated revenue (IGR).
Diverse Tax Obligations Targeted
The CRIRS highlighted that the enforcement actions encompass multiple tax categories, including Personal Income Tax (PIT), Pay-As-You-Earn (PAYE), Withholding Tax (WHT), Direct Assessment, Business Premises Levy, Development Levy, and Rental Income Tax.
Additionally, other statutory payments owed to the state government are also part of this initiative.
The agency expressed that this strategy aims to bolster voluntary compliance, uphold the integrity of the state’s tax management system, and ensure that due revenues are collected for the government.
Enforcement Firmly Rooted in Tax Law
Edwin Okon, Chairperson of the CRIRS, stated that the legal actions were deemed essential after numerous individuals and organizations failed to respond to their tax assessments.
"Since these individuals and companies have decided not to respond to all tax assessments served to them, the Service will enforce the applicable provisions of the tax laws, including the 2025 Tax Reform Act, to reclaim all revenues due to the State," Mr. Okon said.
He encouraged wealthy taxpayers and others to rectify their tax status and fulfill their legal obligations in a timely manner to avoid potential penalties.
Commitment to Transparency
Mr. Okon reiterated the agency's dedication to fostering a fair and transparent tax system that supports sustainable development within the state.
Increasing IGR amid Revenue Diversification
Cross River has increasingly depended on tax revenues to finance public services and developmental initiatives, especially following the loss of several offshore oil wells to Akwa Ibom State due to a Supreme Court ruling on maritime boundaries.
This significant loss led to a decrease in oil-derived revenues that previously flowed to Cross River through the derivation formula.
Available fiscal reports from the state government reveal a steady increase in the state's internally generated revenue over recent years. In 2023, Cross River saw an IGR of N30 billion, which constituted 93.71 percent of the N32 billion budgeted, resulting in a shortfall of around N2 billion.
The state's revenue collection improved in 2024, with an IGR of N46 billion, surpassing the N44 billion target by 5.1 percent.
The figures from the fourth quarter of the 2025 budgetary performance report also reflect continued growth, with the state recording an IGR of N57 billion, equating to 95.2 percent of its N60 billion target for the year.
Mr. Okon emphasized that enhancing tax compliance among high-net-worth individuals and businesses is crucial for sustaining the growing revenue profile of the state.
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