No legal barrier to new tax laws, court rules

An FCT High Court in Abuja has cleared the way for the Federal Government to roll out the new tax regime from January 1, after rejecting a bid to stop its commencement.

Justice Bello Kawu struck out an ex parte application filed by the Incorporated Trustees of African Initiative for Abuse Public Trustees, which sought an interim order restraining the Federal Government, the Federal Inland Revenue Service and the National Assembly from enforcing the newly gazetted tax laws.

The group had challenged the Nigeria Tax Act 2025 and related statutes, citing alleged inconsistencies, and asked the court to halt their implementation pending the determination of the substantive suit.

In his ruling, Justice Kawu held that the application lacked merit, noting that the claimant failed to show any constitutional breach or risk of irreparable harm. He added that fiscal policy and economic reforms fall within the lawful authority of government.

The judge further ruled that once a law is duly enacted and gazetted, it remains in force unless amended by the legislature or set aside by a competent court, stressing that disputes over a tax law do not automatically justify stopping its implementation.

Accordingly, the court affirmed that there was no legal barrier to the take-off of the new tax regime, directing that it should commence as scheduled from January 1.