By Peter Omopo
An Abuja High Court has ordered the Federal Government, the Federal Inland Revenue Service (FIRS), and the National Assembly to proceed with the implementation of the new tax regime scheduled to take effect on January 1, 2026.
The court gave the directive after dismissing a suit seeking to restrain the commencement of the new tax laws. The suit was filed by the Incorporated Trustees of the African Initiative for Abuse Public Trustees against 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, over alleged discrepancies in the legislation.
The plaintiffs, in a motion ex parte, had asked the court to grant an interim injunction restraining the Federal Government, FIRS, the National Assembly and their agencies from implementing or enforcing provisions 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, pending the determination of the substantive suit. They also sought an order stopping the President and relevant federal agencies from enforcing the laws in any state of the federation.
However, in a ruling delivered on Tuesday, Justice Kawu struck out the application, describing it as lacking merit. The court declined to grant the injunction and directed the Federal Government to proceed with the full implementation of the tax laws as scheduled.
Justice Kawu held that the plaintiffs failed to establish sufficient legal grounds for the reliefs sought and did not demonstrate how the implementation of the new tax laws would cause irreparable harm or violate constitutional provisions. He emphasised that fiscal policy and economic reforms fall within the lawful powers of the government.
The judge further ruled that once a law has been validly enacted and gazetted, any perceived errors can only be addressed through legislative amendment or a substantive court order, noting that disputes over tax legislation do not automatically suspend its implementation.
Consequently, the court affirmed that there was no legal barrier to the commencement of the new tax regime and ordered that its implementation should proceed from January 1, 2026.
Reacting to the judgment, stakeholders described the ruling as a major boost, noting that it has cleared obstacles that could have delayed the rollout of the new tax framework.
