Cross River Revenue Service Seals Federal Hospital Offices Over N154 Million Tax Debt

(Cross river map. photo by The gaurdian news nigeria)

Due to overdue tax obligations of N154 million, the Cross River State Internal Revenue Service has blocked access to the offices of the Federal Neuropsychiatric Hospital in Calabar and the Cross River Basin Development Authority.

The enforcement action was described by revenue service officials as part of an endeavor to force defaulting institutions to comply with their tax commitments.

Director of the Cross River Internal Revenue Service's Compliance Department, Ayi Bassey, told reporters during the exercise on Friday in Calabar that the Basin Authority owed the state government more than N53 million as a result of a tax audit that was carried out between 2019 and 2021.

The move coincides with state governments nationwide stepping up their efforts to raise income to improve internally generated revenue and enforce compliance with tax laws among public institutions, private organisations and corporate bodies.

In recent years, tax authorities have increasingly used enforcement tactics, including as property distraint and property sealing, against organizations and agencies that are alleged to have neglected to pay statutory taxes that are owed to state governments or withheld from employees.

Bassey claims that the agency's management was served with a number of notices, including demand notices, assessment notices, and pre-distrain notices, without receiving a response.

"We went to the Cross River Basin Authority this morning," he stated. The Basin Authority owes the Cross River State Government more than N53 million. This obligation resulted from a tax audit that was conducted between 2019 and 2021.

The administration of the institution had received multiple notices, but they had not responded. In an attempt to examine how these issues may be resolved amicably, we even went so far as to arrange a pre-distrain visit, but they declined. That's the reason we did this.

Additionally, Bassey revealed that the Federal Neuropsychiatric Hospital in Calabar owed more than N101 million in unpaid withholding and Pay-As-You-Earn taxes for the years 2022 and 2023. 
He clarified that despite receiving assessment notices in October 2025, demand notices in February 2026, and a pre-action notice in March 2026, the hospital had not complied.

"They demanded in writing that we relocate for a pre-distrain visit because they required the computation of their liabiliy. 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.

Not even their money is involved. It is the money that you take out of employees and send in. Deducting and refusing to pay is a crime that carries fines and interest, he stated.

According to Esirah, the Nigerian Tax Administration Act gave the service the authority to seize and confiscate assets owned by institutions in default until compliance was attained.

"Today, we have engaged in distraction. We have the right to take possession of their property. We have the power to seize their cars or any of their belongings if we come across them anyplace," he stated.

He noted, however, that only administrative offices, including the Chief Medical Director's, were sealed, and that medical operations at the Federal Neuropsychiatric Hospital would not be interfered with.

"Because patient care must continue, we did not interfere with the pharmacy, the wards, or the hospital infrastructure. Since the CMD is in charge of issuing commands, we only sealed his office," Esirah continued.

The Revenue Service emphasized that tax administration under the new act was no longer "business as usual" and cautioned other corporate entities and institutions in the state to comply with their duties.