Legal uncertainty has enveloped the planned January 1, 2026, implementation of Nigeria’s new tax regime as an Abuja High Court on Monday commenced hearing in a suit seeking to halt the enforcement of the recently enacted tax laws.
The suit, now before a vacation court sitting in Abuja, challenges the validity and implementation of key tax reform Acts passed by the National Assembly and assented to by President Bola Ahmed Tinubu.
The Incorporated Trustees of the African Initiative for Abuse of Public Trusts, the plaintiff in the matter, dragged the Federal Republic of Nigeria, the President of the Federal Republic of Nigeria, the Attorney-General of the Federation, the President of the Senate, the Speaker of the House of Representatives and the National Assembly before the court over alleged discrepancies in the new tax laws.
In a Motion Ex Parte, the plaintiff is seeking an order of interim injunction restraining the Federal Government, the Federal Inland Revenue Service (FIRS), the National Assembly and all relevant agencies from implementing, executing or enforcing any provision of the gazetted 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, pending the determination of the substantive suit.
The plaintiff is also asking the court to restrain the President of the Federal Republic of Nigeria, either personally or through any federal agency created under the new tax laws, from implementing the Acts in any state of the federation until the motion on notice is heard and determined.
Further prayers before the court include an order for accelerated hearing of the substantive originating summons, an abridgement of time for the defendants to file counter-affidavits to five days, and leave to serve court processes on the defendants through substituted means.
The plaintiff is seeking permission to serve the President and the Federal Government through the Office of the Attorney-General of the Federation, while service on the National Assembly leadership is to be effected through the Office of the Clerk of the National Assembly.
The disputed tax reform package is part of the Tinubu administration’s broader fiscal restructuring agenda aimed at widening the tax base, improving revenue collection efficiency and reducing Nigeria’s dependence on borrowing.
The reforms, which consolidate multiple tax and revenue administration laws, are intended to modernise tax administration, strengthen compliance, and enhance coordination among federal and subnational revenue agencies.
However, since their passage, the tax laws have generated intense controversy across the country. Critics, including civil society groups, labour unions and some state governments, have raised concerns over alleged alterations to the Acts after passage, lack of adequate stakeholder consultation, possible infringement on states’ fiscal autonomy and the potential burden on businesses and low-income earners.
The National Assembly leadership and the Presidency have repeatedly dismissed allegations of post-passage alterations, insisting that the laws were duly passed, gazetted and remain intact. They have also maintained that the reforms are critical to stabilising Nigeria’s economy amid rising debt servicing obligations and dwindling oil revenues.
After listening to arguments from the plaintiff’s counsel, the court fixed today for ruling on the application for interim injunction.
The impending ruling is being keenly awaited by the Presidency, the National Assembly, state governments and Nigerians, as it may determine whether the controversial tax reforms will take effect as scheduled on January 1, 2026.
