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The Cross River State Internal Revenue Service (CRIRS) has commenced court proceedings against several tax defaulters to recover outstanding tax liabilities exceeding N11 billion.
The enforcement action targets high-net-worth individuals and corporate entities who allegedly ignored multiple notices from the tax authority and failed to settle their statutory tax obligations to the state government.
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The agency said in a statement posted on Facebook on Wednesday that its Legal Services and Enforcement Department is driving the legal action as part of efforts to strengthen tax compliance and improve internally generated revenue (IGR).
Multiple tax obligations involved
According to the agency, the cases involve several 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.
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Other statutory payments owed to the state government are also involved.
The agency said the move is aimed at strengthening voluntary compliance, protecting the integrity of the state’s tax administration system, and ensuring that revenues due to the government are recovered.
‘We will apply tax laws’ — Chairperson
The Chairperson of the Service, Edwin Okon, said the action became necessary after several individuals and organisations failed to respond to tax assessments issued to them.
“Since these persons (individuals/corporates) have decided not to respond to all tax assessments served on them, the Service will apply the relevant sections of the Tax laws, including the 2025 Tax Reform Act, to recover all revenue that is due to the State,” Mr Okon said.
He urged high-net-worth individuals and other taxpayers to regularise their tax status and promptly meet their statutory obligations to avoid sanctions.
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Mr Okon also reiterated the agency’s commitment to promoting a fair and transparent tax system that supports sustainable development in the state.
Rising IGR amid revenue diversification
Cross River has increasingly relied on tax revenue to fund public services and development projects, particularly after losing several offshore oil wells to neighbouring Akwa Ibom State following a Supreme Court ruling on maritime boundaries.
The development significantly reduced oil-derived revenues previously accruing to it through the derivation formula.
Available fiscal data from the state government website shows the state has steadily grown its internally generated revenue in recent years.
In 2023, Cross River recorded N30 billion in IGR, representing 93.71 per cent of the N32 billion budgeted for the period — a shortfall of about N2 billion.
The state’s revenue performance improved in 2024, when it generated N46 billion, exceeding the N44 billion target, representing a 5.1 per cent surplus.
Figures from the fourth quarter 2025 budget performance report also indicate further growth, with the state recording N57 billion in IGR, representing 95.2 per cent of its N60 billion budgeted target.
Mr Okon says improving tax compliance, particularly among high-net-worth individuals and corporate organisations, remains central to sustaining the state’s rising revenue profile.
