A High Court of the Federal Capital Territory has dismissed a suit seeking to halt the implementation of Nigeria’s new tax regime, clearing the way for the Federal Government to commence full implementation on January 1, 2026.
Justice Bello Kawu struck out an application filed by the Incorporated Trustees of African Initiative for Abuse of Public Trustees, which had sought an interim injunction to restrain the Federal Government, the Federal Inland Revenue Service (FIRS), the National Assembly, and other relevant agencies from enforcing the newly enacted tax laws.
In the court order sighted by AIT, the plaintiff had challenged the implementation of the Nigeria Tax Act, 2025; Nigeria Tax Administration Act, 2025; Nigeria Revenue Service (Establishment) Act, 2025; and the Joint Revenue Board of Nigeria (Establishment) Act, 2025, citing alleged discrepancies in the legislation.
The suit 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.
In its application, the plaintiff sought orders restraining the Federal Government and its agencies from implementing the provisions of the gazetted laws pending the determination of a substantive suit.
However, the court held that the application lacked merit and failed to establish sufficient legal grounds for the grant of the reliefs sought.
Justice Kawu ruled that the plaintiffs did not demonstrate how the implementation of the tax laws would cause irreparable harm or violate any constitutional provisions.
The judge emphasized that matters of fiscal policy and economic reforms fall within the lawful powers of the government, noting that once a law has been duly enacted and gazetted, any perceived errors can only be addressed through legislative amendment or a valid court order.
The court affirmed that there was no legal impediment to the commencement of the new tax regime and directed that implementation should proceed as scheduled from January 1, and continue to be in force pending the hearing and determination of the Originating motion before it.
Editor: Anoyoyo Ogiagboviogie
