Court clears way for new tax laws despite mounting opposition
A Federal Capital Territory High Court in Abuja has ruled that the Federal Government can proceed with implementing the new tax regime, dismissing a suit that sought to halt its commencement. Justice Bello Kawu struck out the application, stating that the plaintiffs failed to provide sufficient legal grounds for an injunction. The new tax laws, signed by President Bola Tinubu on June 26, 2025, are scheduled to take effect from January 1, 2026. The decision has sparked protests and warnings from lawyers, civil society groups, and former lawmakers who question the legitimacy and transparency of the process.
What we know
- The court ruled that the new tax regime, including the Tax Act 2025 and related acts, will commence on January 1, 2026.
- Femi Falana (SAN) argued that the laws cannot take effect until controversies over alleged insertions and legitimacy are resolved, highlighting the need for clean copies before January 1, 2026.
- Former lawmakers, under the group House to the Rescue, offered N3m for an authentic copy of the harmonised tax laws, calling the policy a “national fraud” and raising concerns about transparency.
- Musa Rafsanjani of CISLAC and former presidential candidate Dumebi Kachikwu warned that implementing the laws amid unresolved allegations would breach constitutional processes and further burden Nigerians.
- Senate Leader Opeyemi Bamidele defended the reforms, insisting they are aimed at improving the country’s fiscal base and were passed after extensive stakeholder consultations.
