By Asuquo Cletus
The Cross River State Internal Revenue Service has sealed off the offices of the Cross River Basin Development Authority and the Federal Neuropsychiatric Hospital, Calabar, over unpaid N154m tax liabilities.
Officials of the revenue service who carried out the enforcement exercise described the action as part of efforts to compel compliance with tax obligations by defaulting institutions.
Speaking to journalist during the exercise on Friday the Director of Compliance Department of the Cross River Internal Revenue Service, Ayi Okon Bassey, said the Basin Authority was indebted to the state government to the tune of over N53m following a tax audit conducted for the period between 2019 and 2021.
According to him, several notices, including assessment notices, demand notices and pre-distrain notices, were served on the management of the agency without any response.
He said, “This morning, we went to the Cross River Basin Authority. The Basin Authority is indebted to the Cross River State Government to the tune of over N53m and this liability arose as a result of a tax audit exercise carried out for the period 2019 to 2021.
“Several notices had been served on the management of that institution without any response. We even went further for a pre-distrain visit all in an effort to see how these liabilities could be sorted out amicably, but they refused to come forth. That is why we took this action.”
Bassey also disclosed that the Federal Neuropsychiatric Hospital, Calabar, owed over N101m in unremitted Pay-As-You-Earn and withholding taxes covering the period between 2022 and 2023.
He explained that the hospital had been served assessment notices in October 2025, followed by demand notices in February 2026 and a pre-action notice in March 2026, but failed to comply.
“We had to move for a pre-distrain visit, which they requested in writing that they needed the computation of their liability. We sent it to them with a timeline of seven days to come in for review. It is over one month today before this action,” he added.
Also speaking The Director of Legal Services and Enforcement of the service, Emmanuel Esirah, said the enforcement became necessary because taxes deducted from workers’ salaries were expected to be remitted to the relevant state tax authority.
“It is not even their money. It is the money you deduct from staff and remit. If you deduct and refuse to remit, it is an offence which attracts penalties and interest,” he said.
Esirah stated that under the Nigerian Tax Administration Act, the service had powers to distrain and impound properties belonging to defaulting institutions until compliance was achieved.
“What we have done today is distrain. We are entitled to distrain their premises and chattels. If we see their vehicles or any of their property anywhere, we have the authority to impound them,” he said.
He, however, clarified that medical activities at the Federal Neuropsychiatric Hospital would not be disrupted, noting that only administrative offices, including that of the Chief Medical Director, were sealed.
“We did not touch the pharmacy, the wards or the hospital facilities because treatment of patients must continue. We sealed only the office of the CMD because he is responsible for giving directives,” Esirah added.
The revenue service warned other corporate bodies and institutions in the state to comply with tax obligations, stressing that tax administration under the new act was no longer “business as usual.”
