Ekiti Revenue Service urges taxpayers to resolve tax disputes lawfully not on social media
By Idowu Adebomi
The Ekiti State Internal Revenue Service (EKIRS) has called on taxpayers, particularly operators in the informal sector, to utilize established legal channels to dispute tax assessments rather than resorting to public protests or social media campaigns.
The agency emphasized that effective tax administration requires balancing the government’s mandate to collect lawful revenue with the rights of taxpayers to challenge assessments they consider inaccurate or excessive.
The Chairman of EKIRS, Mr. Olaniran Olatona, made the call on Thursday in Ado-Ekiti while addressing journalists regarding recent controversies surrounding tax assessments issued to traders, artisans, and informal sector operators.
Olatona clarified that the notices served on taxpayers were merely assessment notifications and not enforcement actions.
He stressed that they cover outstanding liabilities for the 2024 and 2025 tax years in compliance with applicable tax laws, including the Nigerian Tax Act 2025.
He explained that receiving a tax assessment does not imply impending enforcement, as the law explicitly grants taxpayers the right to object to figures they consider incorrect.
“An assessment is not an enforcement action. If a taxpayer is dissatisfied with the liability stated in the notice, there is a legally defined process to request a review,” Olatona stated.
He noted that aggrieved taxpayers must submit written objections within 30 days, outlining their grounds for dispute alongside supporting evidence.
The tax authority is then required to review the submission and respond within 90 days, providing a structured framework for dispute resolution.
Olatona highlighted that EKIRS frequently goes beyond basic statutory requirements by engaging directly with taxpayers, inspecting their operational records, and reducing assessments when evidence shows the initial figures do not reflect actual business activities.
He cited recent cases involving a private school and a hospital whose tax liabilities were revised downward following physical verification.
The Chairman also debunked the widespread belief that the informal sector is the primary driver of Ekiti State’s Internally Generated Revenue (IGR).
He revealed that direct assessments on self-employed individuals generated approximately ₦1.23 billion in 2025, accounting for roughly 4.5% of the state’s total ₦27 billion IGR.
Even when accounting for broader informal sector activities such as market collections, commercial transport levies, and business premises registration the sector’s total contribution stood at approximately ₦1.46 billion.
In contrast, Pay-As-You-Earn (PAYE) taxes from formal employment remained the primary revenue driver, contributing about 63% of total IGR.
Olatona further noted that revenue from direct assessments fell from ₦161.9 million in January 2026 to ₦76.1 million in June 2026, reinforcing that the informal sector does not dominate state revenues.
Attributing recent increases in individual tax liabilities to enhanced data collection rather than higher tax rates, Olatona explained that transitioning from manual systems to digital analytics allows the agency to identify multiple business operations linked to single taxpayers.
“Many taxpayers query why their assessment rose from ₦80,000 last year to ₦180,000 this year. The increase is simply because we now possess more comprehensive data than before,” he said, adding that many taxpayers accepted the revised figures after reviewing the underlying data with EKIRS officials.
Addressing broader tax administration policies, Olatona revealed that EKIRS voluntarily suspended active enforcement operations on July 8, 2025, to test whether improved engagement and voluntary compliance could sustain revenue growth.
The EKIRS boss urged taxpayers with lingering concerns to approach the agency through official administrative channels.
He also commended traditional rulers, particularly the Ewi of Ado-Ekiti, for facilitating constructive dialogue between the revenue service and affected trade groups.
“The law offers multiple layers of review and avenues for appeal. Our primary goal is to help businesses grow rather than hinder them, as a thriving business benefits both the owner and the state,” Olatona concluded, while urging media organizations to help educate the public on tax procedures and compliance rights.