Court Hears Suit Seeking Suspension Of New Tax Laws
An Abuja High Court, sitting as a vacation court, has commenced hearing in a suit seeking to halt the implementation of Nigeria’s new tax regime scheduled to take effect on January 1, 2026.
The tax reform laws were recently passed by the National Assembly and signed by President Bola Tinubu.
The suit was filed by the Incorporated Trustees of 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.
In the suit, the plaintiff is challenging what it described as discrepancies in the new tax laws and has asked the court to stop their implementation pending the determination of the substantive suit.
Through a motion ex parte, the plaintiff is seeking an interim injunction restraining the Federal Government, the Federal Inland Revenue Service (FIRS), the National Assembly and any of their agencies from implementing, executing or enforcing provisions of the Nigeria Tax Act, 2025; Nigeria Tax Administration Act, 2025; Nigeria Revenue Service (Establishment) Act, 2025; and the Joint Revenue Board of Nigeria (Establishment) Act, 2025.
The plaintiff is also asking the court to restrain the President, either personally or through any federal agency created under the new tax laws, from enforcing the Acts in any state of the federation pending the hearing and determination of the motion on notice.
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In addition, the plaintiff is praying for an order for accelerated hearing of the substantive originating summons and for the time allowed for the defendants to file counter-affidavits to be abridged to five days.
The applicant further sought leave of court to serve court processes on the President, the Attorney-General of the Federation and the leadership of the National Assembly through substituted means, including service at the Federal Ministry of Justice and the Office of the Clerk of the National Assembly.
It also asked the court to deem such substituted service as proper and valid.
The court subsequently fixed Monday for ruling on the application for interim injunction.
