The Edo State Internal Revenue Service (EIRS) sealed off the industrial premises of Rongtai Plastic Company Limited and eight other corporate entities in the Utesi Community of Ikpoba-Okha Local Government Area of Edo State on October 29, 2026. The companies, predominantly Chinese-owned, have unremitted tax liabilities totaling ₦8,982,000,000. The affected firms include Rongtai Hardware Limited, Rongtai Energy Technology Company Limited, and Rongtai Building Materials Company Limited.
The EIRS stated that the tax liabilities resulted from the non-compliance of these organizations in fulfilling their mandatory tax obligations. Specifically, they failed to register employees for Pay-As-You-Earn (PAYE) tax, file Annual Employer’s Tax Returns, and deduct and remit PAYE taxes. Prior to the enforcement, formal notices detailing the established liabilities were individually communicated to all nine companies.
Despite repeated reminders and demands for compliance, the named organizations failed to resolve their outstanding obligations. This compelled the EIRS to exercise its legal power of distraint to seal off their operational sites via valid Court Orders. The enforcement orders remain in effect, and the seals will be removed upon settlement of all outstanding tax liabilities by the defaulting companies.
The nine companies sealed by the EIRS include Rongtai Food Company Limited, Five Star Wire and Cable Company, Xin Guo Technology Nig. Ltd, Changrong Wood Nigeria Limited, and Shunda Nigeria Enterprise. These companies operate within the Utesi Community of Ikpoba-Okha Local Government Area of Edo State.
According to the EIRS, the sealing of the companies was a necessary step to enforce tax compliance. The service had earlier issued notices and made several attempts to get the companies to meet their tax obligations. However, the companies failed to respond, leading to the distrain order.
The EIRS’ action is part of its efforts to boost tax revenue and enforce compliance with tax laws in Edo State. The service has been working to identify and address tax evasion and non-compliance by businesses operating in the state. The sealing of the Rongtai Group and eight other companies is a significant step in this direction.
The companies can still operate and settle their outstanding tax liabilities. Once they pay their debts, the seals will be removed, and they can resume normal operations. The EIRS has not disclosed any further actions it will take if the companies fail to comply.
Key points
- The Edo State Internal Revenue Service sealed 9 companies with unpaid tax liabilities totaling ₦8,982,000,000.
- The companies failed to register employees for PAYE tax, file Annual Employer’s Tax Returns, and deduct and remit PAYE taxes.
- The EIRS exercised its legal power of distraint to seal off the operational sites via valid Court Orders.
