Court Delivers Ruling on Whether Tax Laws Should Take Effect on January 1
- The Federal Capital Territory High Court had dismissed a suit seeking to stop the implementation of Nigeria’s new tax laws scheduled to commence on January 1
- Justice Bello Kawu had ruled that the plaintiff failed to establish sufficient legal grounds to justify halting the enforcement of laws already enacted and gazetted
- The court had affirmed that fiscal reforms fall within the lawful powers of government and directed that the new tax regime should take effect as scheduled
A Federal Capital Territory High Court in Abuja has cleared the way for the Federal Government to commence the implementation of Nigeria’s new tax regime from January 1, despite protests and a legal challenge seeking to stop its take off.
The ruling, delivered on Wednesday, December 3, by Justice Bello Kawu, dismissed an application that asked the court to halt the enforcement of recently enacted tax laws.
Source: Facebook
The judge ordered that the reforms should proceed as scheduled, finding no legal barrier to their commencement, Punch reported.
Court rejects bid to halt tax laws
The suit was filed by the Incorporated Trustees of African Initiative for Abuse Public Trustees. The group had asked the court to issue an interim injunction restraining the Federal Government, the Federal Inland Revenue Service and the National Assembly from implementing the new tax framework.
The plaintiff named the Federal Republic of Nigeria, the president, the attorney general of the federation, the president of the senate, the speaker of the House of Representatives and the National Assembly as defendants. The action was based on claims of discrepancies in the newly gazetted tax legislation.
Through an ex parte application, the group sought to stop the enforcement of the Nigeria Tax Act 2025, the Nigeria Tax Administration Act 2025, the Nigeria Revenue Service Establishment Act 2025 and the Joint Revenue Board of Nigeria Establishment Act 2025. The request was to suspend implementation pending the determination of the substantive suit.
Source: Twitter
Judge cites lack of legal basis in ruling
Justice Kawu ruled that the application failed to meet the legal threshold required for the grant of an interim injunction. The court held that the plaintiff did not show how the enforcement of the tax laws would cause irreparable damage or violate constitutional provisions.
The judge also held that fiscal policy and economic reforms fall within the lawful authority of the government. He added that disagreements over tax legislation do not automatically justify stopping its enforcement once it has been validly enacted.
The court further noted that any errors identified in an existing law can only be corrected through legislative amendment or a substantive court decision after full hearing, not through an interim application.
A certified true copy of the ruling stated:
“I have considered the application together with the affidavit in support. I have also considered the submission of the learned counsel for the claimant/applicant together with the judicial authorities cited and I am of the strong view that the court lacks power to stop implementation of a law already signed by the appropriate authority without concrete evidence of any wrongdoing.”
The ruling added:
“In view of the above, the implementation of the Tax Act 2025 and other related Acts will commence on January 1st 2026 and continue to be in force pending the hearing and determination of the Originating Motion before this Honourable Court.”
With the decision, the new tax regime is now legally cleared to take effect as planned while the substantive case continues before the court.
25 FAQs and answers on Nigerian tax law
Earlier, Legit.ng reported that Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms had sought to calm growing public anxiety over Nigeria’s sweeping tax reforms scheduled to take effect from January 1, 2026.
He insists the changes are not aimed at imposing higher tax rates or arbitrary revenue targets on citizens.
Legit.ng had compiled 25 frequently asked questions on the tax reforms.
Source: Legit.ng
