The Cross River State Internal Revenue Service (CRIRS) has sealed the offices of the Cross River Basin Development Authority and the Federal Neuropsychiatric Hospital, Calabar, over alleged tax liabilities amounting to N154 million.
Victoria Omini CALABAR
The enforcement exercise, carried out on Friday by officials of the revenue service, was aimed at compelling the affected institutions to comply with their tax obligations.
Speaking during the operation, the Director of Compliance at CRIRS, Ayi Okon Bassey, disclosed that the Cross River Basin Development Authority owed over N53 million following a tax audit covering the 2019 to 2021 period.
Bassey explained that the agency had received several notices, including assessment, demand and pre-distrain notices, but failed to respond.
According to him, the service also made efforts to resolve the issue amicably before resorting to enforcement.
He further revealed that the Federal Neuropsychiatric Hospital, Calabar, was indebted to the state government in excess of N101 million in unremitted Pay-As-You-Earn (PAYE) and withholding taxes for 2022 and 2023.
He said the hospital was issued assessment notices in October 2025, followed by demand notices in February 2026 and a pre-action notice in March 2026, yet failed to comply.
Bassey added that during a pre-distrain visit, the hospital management requested details of the tax computations, which were subsequently forwarded to them alongside a seven-day timeline for reconciliation, but no action was taken after more than a month.
Also speaking, the Director of Legal Services and Enforcement, Emmanuel Esirah, stated that taxes deducted from workers’ salaries must be remitted to the appropriate tax authority, noting that failure to do so constitutes an offence that attracts penalties and interest.
Esirah explained that under the Nigerian Tax Administration Act, the revenue service is empowered to distrain and impound properties belonging to defaulting institutions until outstanding liabilities are settled.
He noted that while administrative offices at the Federal Neuropsychiatric Hospital, including that of the Chief Medical Director, were sealed, medical services and patient care activities were not affected.
The service warned other organisations and institutions operating in the state to comply with tax regulations, stressing that enforcement under the new tax administration regime would be strictly implemented.
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