HIGH COURT REFUSES TO HALT NIGERIA’S NEW TAX REGIME

The High Court of the Federal Capital Territory has refused an application to stop the Federal Government from implementing Nigeria’s new tax regime scheduled to commence on January 1, 2026. Justice Bello Kawu dismissed the suit filed by the Incorporated Trustees of the African Initiative for Abuse of Public Trust.

The group had sought interim injunctions to restrain the Federal Government, the Federal Inland Revenue Service, and the National Assembly from enforcing the new tax laws. They argued that 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 were improperly gazetted and could lead to abuse of public trust. They asked the court to halt implementation pending the determination of the substantive case.

In his ruling, Justice Kawu emphasized the government’s authority in fiscal matters. “Fiscal policy and economic reforms fall squarely within the powers of government,” he stated. The court ruled that “controversies over tax laws cannot stop implementation of a gazetted Act unless amended or the offending sections set aside by a valid court order.”

Furthermore, the court noted that the plaintiffs failed to meet a key legal requirement. It found that the plaintiffs “did not demonstrate how enforcement of the new tax regime would cause irreparable harm or violate constitutional provisions.”

With this ruling, the path remains clear for the implementation of the new tax laws beginning on the first day of the new year.