- The agency owes the Cross River State Government more than ₦53 million arising from a tax audit conducted between 2019 and 2021
- repeated attempts to recover the outstanding liabilities through official notices and engagements with the institution failed to produce results
- Bassey also disclosed that the Federal Neuropsychiatric Hospital, Calabar, was indebted to the state government to the tune of over ₦101 million
Cross River State Internal Revenue Service has shut down the offices of the Cross River Basin Development Authority and the Federal Neuropsychiatric Hospital in Calabar over alleged unpaid tax liabilities amounting to more than ₦154 million.
Officials of the revenue agency carried out the enforcement operation on Friday in Calabar, describing the action as part of efforts to enforce compliance with tax regulations among institutions owing the state government, Eko Hot Blog gathered.
Speaking during the exercise, the Director of Compliance at the Cross River Internal Revenue Service, Ayi Bassey, said the Cross River Basin Development Authority owed over ₦53 million following a tax audit covering the period from 2019 to 2021.
According to him, repeated attempts to recover the outstanding liabilities through official notices and engagements with the institution failed to produce results.
“This morning, we visited the Cross River Basin Authority. The agency owes the Cross River State Government more than ₦53 million arising from a tax audit conducted between 2019 and 2021,” Bassey said.
He explained that assessment notices, demand notices and pre-distrain notices had earlier been served on the agency without any meaningful response from its management.
“We made several efforts to resolve the issue amicably, including a pre-distrain visit, but they failed to respond appropriately. That is why we had to enforce compliance,” he added.
Bassey also disclosed that the Federal Neuropsychiatric Hospital, Calabar, was indebted to the state government to the tune of over ₦101 million in unremitted Pay-As-You-Earn and withholding taxes for 2022 and 2023.
He said the hospital had received assessment notices in October 2025, demand notices in February 2026 and a pre-action notice in March 2026 but failed to settle the liabilities.
According to him, the hospital management later requested detailed computation of the tax obligations, which the revenue service provided alongside a seven-day deadline for reconciliation and response.
“It has been more than a month since we provided the documents, yet there was no compliance, which necessitated today’s action,” he stated.
Also speaking, the Director of Legal Services and Enforcement at the agency, Emmanuel Esirah, said the affected institutions were being sanctioned for failing to remit taxes deducted from workers’ salaries.
“It is not even their money. These are deductions made from employees’ salaries which are expected to be remitted to the state. Failure to remit them is an offence that attracts penalties and interest,” he said.
Esirah noted that the Nigerian Tax Administration Act empowers the service to seal premises and seize properties belonging to defaulting organisations until outstanding liabilities are settled.
“What we carried out today is a distraint exercise. We have the legal authority to seal their offices and impound any property belonging to them wherever found,” he added.
He, however, clarified that medical services at the Federal Neuropsychiatric Hospital would not be disrupted, explaining that only administrative sections, including the office of the Chief Medical Director, were sealed.
“We did not interfere with patient care areas such as the wards, pharmacy or treatment sections because healthcare services must continue uninterrupted,” Esirah explained.
The revenue service also warned other institutions and corporate organisations operating in the state to comply fully with tax obligations, stressing that enforcement of the new tax administration law would be strict and uncompromising.
