By Lateef Ibrahim, Abuja
An Abuja High Court has given the Federal government, the Federal Inland Revenue Services, FIRS, and the National Assembly the legal backing to proceed with the take-off and implementation of the new tax regime billed for January 1, 2026, with the failure of the suit seeking an injunction to restrain the Federal Government from proceeding.
Recall that Incorporated Trustees of African Initiative for Abuse Public Trustees (plaintiff), had dragged the Federal Republic of Nigeria, President of the Federal Republic of Nigeria, Attorney General of the Federation, President of the Senate, Speaker of the House of Representatives and National Assembly (defendants) to Court over the alleged discrepancies in tax laws.
In a Motion Ex parte, the plaintiff is seeking an order of interim injunction pending the hearing and determination of the substantive suit to stop/ restrain the Federal Govt, FIRS, National Assembly, or any of its agencies from implementing, executing, and/or enforcing the any of the provisions of the gazetted Nigeria Tax Act, 2025, Nigeria Tax Administration Act, 2025, the Nigeria Revenue Service (Establishment) Act, 2025 or the Joint Revenue Board of Nigeria (Establishment) Act, 2025 for any reasons pending the hearing and determination of the Motion on Notice.
It is also seeking an order of interim injunction pending the hearing and determination of the motion notice, restraining the President of the Federal Republic of Nigeria, either by himself or through any agency of the Federal Government created under the gazette Nigeria Tax Act, 2025 Nigeria Tax Administration Act, 2025, the Nigeria Revenue Service (Establishment) Act, 2025 or the Joint Revenue Board of Nigeria (Establishment) Act, 2025 from implementing the provisions of those Acts of the National Assembly in any states of the Federation where applicable, pending the hearing and determination of the Motion on Notice.
But ruling on the matter yesterday , the Court presided over by Justice Kawu dismissed the suit, directing the Federal Government to proceed with the full implementation of the tax law.
In a ruling delivered on Tuesday , Justice Kawu struck out the application filed by the plaintiffs, who had prayed the court to issue an injunction restraining the Federal Government and relevant agencies from implementing the new tax regime.
The court held that the suit lacked merit and failed to establish sufficient legal grounds to warrant the granting of the reliefs sought.
The presiding Judge ruled that the plaintiffs did not demonstrate how the implementation of the new tax law would occasion irreparable harm or violate any constitutional provisions, stressing that matters of fiscal policy and economic reforms fall within the powers of the government as provided by law.
The Court held that once a law is made, lany error can only be rectified via amendment or an order of the court if any, saying that controversies over tax law can’t stop implementation of a gazetted law except an order of court or an amendment.
Consequently, the court affirmed that there was no legal impediment to the commencement of the new tax law and directed that its implementation should proceed as scheduled from January 1.
Reacting to the judgment, stakeholders described the legal breakthrough as a huge boost, as it has removed all obstacles that would have slowed down the exercise.
