Amanze Chinonye
The Federal Government (FG) has been dragged before the Federal Capital Territory (FCT) High Court over the planned implementation of new tax laws set to take effect on January 1, 2026.
The legal action has added momentum to the ongoing debate over the legitimacy and timing of the reforms.
The suit was filed by the Incorporated Trustees of African Initiative for Abuse Public Trustees (AIAPT). The plaintiffs are seeking a court order to halt the enforcement of four key tax reforms:
Join our WhatsApp Channel- Nigeria Tax Act 2025
- Nigeria Tax Administration Act 2025
- Nigeria Revenue Service (Establishment) Act 2025
- Joint Revenue Board of Nigeria (Establishment) Act 2025
The defendants named in the suit include the Federal Republic of Nigeria, President Bola Ahmed Tinubu, Attorney-General of the Federation, President of the Senate, Speaker of the House of Representatives, and National Assembly Management.
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In a Motion Ex parte, the plaintiffs requested an interim injunction restraining the government and its agencies from implementing the new laws until the substantive suit is heard and determined.
They also sought an accelerated hearing of the case, citing the imminent take-off date of the tax regime. The court has scheduled a ruling on the motion for January 5, 2026, and has granted substituted service on some defendants through official channels.
Controversy Over Alterations and Constitutional Concerns
The lawsuit centers on allegations that the version of the laws gazetted for implementation differs from the versions passed by the National Assembly, raising concerns about legislative integrity and compliance with constitutional procedures.
On December 17, 2025, a House of Representatives member raised a matter of privilege alleging that the laws published in the Federal Gazette included provisions not approved during parliamentary deliberations. In response, the National Assembly ordered re-gazettement of the Acts and the issuance of certified true copies of the laws as passed.
Former Vice President Atiku Abubakar described the alleged alterations as a “grave constitutional issue”, warning that a law gazetted in a form other than that actually passed constitutes a nullity under Section 58 of the 1999 Constitution.
Political and Public Reactions
The suit has drawn widespread attention from lawmakers, civil society groups, and student associations.
The Minority Caucus of the House of Representatives and the National Association of Nigerian Students (NANS) have called for a suspension of the rollout, demanding transparency and strict adherence to legislative processes.
Civil society groups like The Patriots have argued that suspending implementation could create fiscal uncertainty, while other coalitions, such as the Coalition of Northern Groups (CNG), allege post-passage alterations represent an usurpation of legislative authority.
Government’s Position and Implications
Despite the legal challenge, the Federal Government has insisted that the January 1 rollout will proceed as planned, emphasizing that the reforms aim to simplify tax administration, enhance revenue collection, and provide relief to taxpayers.
Officials, including Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, have maintained that failure to implement the reforms could perpetuate systemic overtaxation and inefficiencies, undermining efforts to widen the tax base and reduce multiple tax burdens.
Legal experts, however, warn that enforcing a law whose authenticity is in dispute could have far-reaching constitutional and economic consequences, potentially eroding public confidence in the legislative process.
With the High Court scheduled to rule in early January, the fate of Nigeria’s most ambitious tax reform in decades remains uncertain. The outcome is expected to shape not only the country’s tax landscape but also public trust in lawmaking institutions and the government’s commitment to constitutional procedure.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
