Tax Clearance Certificate Required to Enjoy Free Education in Lagos—LIRS

According to the chairman of the tax agency, Mr Ayo Subair, “It is standard procedure to require a Tax Clearance Certificate (TCC) to access government services.

“To obtain a TCC, individuals must file their annual tax returns for the applicable assessment year and ensure their tax payments are currently based on their declared income,” Mr Subair stated.

He highlighted that this requirement has been in practice for a long time and aligns with Section 85 of the Personal Income Tax Act (PITA) 2004 (as amended).

He disclosed this initiative, part of the THEMES PLUS agenda, is included in the government’s broader efforts to provide essential services such as affordable housing, efficient transportation, free healthcare, youth and small business empowerment programs, enhanced security, and better road infrastructure, among others.

The tax chief emphasised that every resident of the state, whether in formal employment or not, is required by law to file annual tax returns, declare their income and pay any taxes due.

This requirement is backed by the Nigerian constitution; it is also the law, as stipulated in the PITA and part of the social contract between the government and residents, he stressed.

According to him, requiring a TCC for access to free services is not a new policy but a longstanding practice intended to foster fairness and transparency in using public resources, noting tax revenues help fund various public programs that benefit millions of Lagos residents.

For informal sector taxpayers, who might not have detailed financial records, the government has introduced a presumptive tax of N10,100 (comprising N10,000 in annual tax and a N100 development levy) to facilitate their inclusion in the tax net.

Mr Subair explained that tax compliance is essential for the sustainability of public programs and services, emphasising that the Lagos State government is dedicated to offering quality and efficient services to its residents.

As part of this mission, it mandates that all taxable individuals register with the tax authority, submit their returns, and pay applicable taxes to maintain an updated TCC.

To enhance the convenience and streamline the process, LIRS has deployed staff and agents to markets and schools, establishing one-stop centres where individuals can obtain their TCC without needing to visit tax offices.

Flexible payment options, including instalment plans, are also available, though full payment must be completed before the TCC is issued, adding that the TCC of guardians will be accepted from students who do not reside with their biological parents.

“The aim is fairness, accountability, and sustainability. This policy is not about inflicting hardship, but rather ensuring that everyone, including those in the formal sector, contributes their fair share to sustain the provision of essential services,” the LIRS chief stated.