Akwa Ibom govt shuts down three banks over alleged ₦228m tax debt

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The Akwa Ibom State Government Internal Revenue Service (AKIRS) has taken action to shut down three banks due to their reported failure to pay a total outstanding tax debt of ₦228 million owed to the state government.

The banks in question are two Keystone Bank branches situated on Abak Road and Ikot Ekpene Road in Uyo, as well as Heritage Bank located on Aka Road in Uyo.

On Thursday, the AKIRS Enforcement and Recovery Department sealed these banks in compliance with a Notice of Distrain issued by the Akwa Ibom State High Court, Eket Judicial Division.

The Executive Director of Enforcement and Recovery at AKIRS, Leo Umana, informed the press in Uyo that Heritage Bank neglected to remit its tax liabilities of ₦100,270,910 to the state, while Keystone Bank declined to settle its tax debt of ₦128,413,882 owed to the state government.

Umana emphasized that the banks had been issued warning notices, but they did not adhere to them despite several months passing. He also noted that AKIRS had exhausted all possibilities for reconciliation and negotiation with these financial institutions before taking legal action.

According to him, under the law, the banks receiving the distraint notice have a 14-day window to engage in negotiations with AKIRS and lift the order.

“If, after 14 days, they do not comply, we have the mandate of the court to sell the property and recover the tax owed the state,” Umana said.