There was outrage in Enugu State following the locking of guests and staff of some hotels by tax collectors from Enugu State Internal Revenue Service on tax drive on Friday.
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The drive, it was gathered, followed a court order by Justice K.I Okoye of the State High Court, empowering the agency to seal hotels that failed to pay approved taxes.The order was secured on November 29, 2023.

The state government, through the state internal revenue service agency, had approached the court seeking an order to sanction hotels in the state for failure to remit staff’s Pay As Your Earn (PAYE) tax, development levy and companies withholding tax due the state government for the period of 2015 to 2020. For some, it was from 2018 to 2021.

It was further learnt that following the court order, the enforcement team of the revenue agency stormed the various defaulting hotels and other businesses during the early hours of Friday to seal such businesses for tax evasion.

However, trouble started when the agency’s enforcement team sealed defaulting hotels, denying guests and staff of the affected hotels opportunity to leave the premises.

One of the affected hotels was La Virgin Suites & Residence, where high profile guests allegedly missed early morning flights and other business engagements that brought them to Enugu as a result of the enforcement action.
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It was same scenario in other affected hotels as only guests without cars were lucky to leave through the hotels’ back gates, while the main gates were locked.

Cab drivers, who had gone to pick clients, equally had their vehicles locked in by the enforcement team.
An Uber driver, who had gone to pick his client in one of the hotels, was allegedly rebuffed by security operatives that accompanied the tax collectors, while asking to be allowed to drive out with his client.

A hotel operator, who preferred anonymity,said: “The economic climate is very harsh, just as cost of services has gone up astronomically. We all know that inflation is on the rise. Obviously, it is very difficult for people, especially an average Nigerian, to start visiting and spending in hotels during this period of hardship. We have tried to explain to the government, but they won’t understand.”

Addressing journalists shortly after the exercise, Chairman of the Enugu State Internal Revenue Service, EkeneNnamani, said after a tax audit, it was discovered that several institutions have not been meeting their tax obligations for the past seven years. Nnamani said demand notices, warning letters as well as intention to sue were served the defaulting organisations, but they failed to comply.
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