Court rules on move to stop January 1 tax laws’ implementation

A High Court of the Federal Capital Territory (FCT) has cleared the way for the Federal Government to implement the new tax laws from January 1, 2026, after rejecting an attempt to stop the reforms.

Justice Bello Kawu dismissed an ex-parte application filed by a group, the Incorporated Trustees of African Initiative for Abuse of Public Trust, which sought to restrain the Federal Government from enforcing the newly enacted tax laws.

In his ruling delivered on December 23, a certified true copy of which was seen in Abuja on Wednesday, the judge held that the court lacked the power to halt the implementation of laws already signed by the appropriate authority without strong and concrete evidence of wrongdoing.

Justice Kawu said the applicants failed to place sufficient materials before the court to justify the grant of an interim injunction.

“I am of the strong view that the court lacks power to stop implementation of a law already signed by the appropriate authority without concrete evidence of any wrongdoing,” the judge ruled.

He added that granting an injunction at the preliminary stage would amount to touching on the substance of the main suit, noting that an ex-parte application could not be used to suspend the coming into force of an Act already signed into law or gazetted.

The judge consequently directed the Federal Government to proceed with the planned implementation of the Tax Act 2025 and other related laws from January 1, 2026, pending the hearing and determination of the substantive suit.

According to the ruling, once an Act is signed into law, it can only be repealed by the National Assembly or have offending sections struck down by a court after full hearing.

Justice Kawu, however, granted the plaintiff’s request for substituted service on some of the defendants. He ordered that court processes meant for the Federal Republic of Nigeria and the President be served through the Office of the Attorney-General of the Federation (AGF).

He also directed that documents for the Senate President, the Speaker of the House of Representatives and the National Assembly be served through the Clerk of the National Assembly.

The suit was adjourned to January 9, 2026, for further hearing.

The plaintiff group had argued that controversies surrounding the tax laws, including allegations of alterations, warranted a halt to their implementation until the issues were resolved.

Those listed as defendants include 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.