The Imo Board of Internal Revenue has sealed eight commercial banks operating in the state for failure to remit two billion naira ‘Withholding Tax’ to the government.

The Commissioner for Internal Resources and Pension Affairs, Mr Nick Opara-Ndudu, who made the disclosure to our correspondent in Owerri  said the banks were shut following a court order.

Opara-Ndudu said a court order had authorised the board to seal the affected banks for not heeding to its repeated demands of payment.

He said the banks owed the state two billion naira and had refused to pay after several requests from the board.

The has action grounded commercial activities in the state capital.

The affected banks are UBA, First Bank, Zenith, Fidelity, Diamond, Enterprise, Keystone and Ecobank.

Opara-Ndudu explained that the action was taken as a last resort following the non-compliance with the provisions of the law by the financial institutions.

He said the action would send a signal to other organisations on the need to meet their statutory obligations to the state and its citizens.

“Imo has the lowest tax compliance rate across the country because the institutions operating in it have taken the state government for granted.

“It is our hope that the affected institutions would take immediate steps to clear the liabilities owed to the state to be allowed to continue to do their business,’’ he said.

The commissioner appealed to other institutions to ensure that they meet their statutory obligations with respect to taxes and other approved levies as at when due.

He said doing that would save them from “being caught on the wrong side of the law’’.

Our correspondent who visited the closed banks on Bank Road in Owerri metropolis reports that some of their stranded customers were seen in large numbers discussing the issue.

Mr Gabriel Abiakam, a customer of Keystone, described the situation as embarrassing, and urged the government and the banks to remedy the situation.