A High Court of the Federal Capital Territory (FCT) has refused to restrain the Federal Government from implementing its January 1 timeline for the commencement of newly enacted tax laws, dismissing a suit that sought to halt their take‑off.
In his ruling, Justice Bello Kawu struck out an application brought by the Incorporated Trustees of African Initiative for Abuse Public Trustees. The group had sought an interim injunction against the Federal Government, the Federal Inland Revenue Service (FIRS), and the National Assembly, to stop enforcement of the newly gazetted tax legislation.
The claimant had listed as defendants the Federal Republic of Nigeria, the President, the Attorney‑General of the Federation, the Senate President, the Speaker of the House of Representatives, and the National Assembly, alleging discrepancies in the new tax regime.
Through its ex parte application, the group asked the court to restrain the government and its agencies from implementing provisions of the Nigeria Tax Act, 2025; the Nigeria Tax Administration Act, 2025; the Nigeria Revenue Service (Establishment) Act, 2025; and the Joint Revenue Board of Nigeria (Establishment) Act, 2025, pending determination of the substantive suit.
Justice Kawu, however, held that the application was devoid of merit and failed to disclose sufficient legal grounds for the reliefs sought. He emphasized that the claimant did not demonstrate how enforcement of the new tax laws would occasion irreparable harm or breach constitutional provisions, noting that fiscal policy and economic reforms fall squarely within the lawful powers of government.
The court further observed that once a law has been validly enacted and gazetted, any perceived errors can only be corrected through legislative amendment or a competent court order. Mere controversies surrounding a tax law, the judge stressed, do not justify suspending its implementation.
Accordingly, the court affirmed that there was no legal impediment to the commencement of the new tax regime and directed that implementation should proceed as scheduled from January 1.
The Certified True Copy (CTC) of the ruling, sighted on Wednesday, reads in part: “I have considered the application together with the affidavit in support. I have also considered the submissions of learned counsel for the claimant/applicant and the judicial authorities cited. 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 wrongdoing. At this preliminary stage, it will be difficult, if not impossible, to prove any wrongdoing, and the court must be careful not to touch on the main issue.
It is my considered opinion that granting an injunction at this stage would amount to delving into the substantive matter. Once an Act is signed into law, it can only be repealed by the legislature or any offending section set aside by a competent court. An ex parte application cannot be used to prevent the coming into force of an Act already signed into law or gazetted.
In view of the above, the implementation of the Tax Act 2025 and other related Acts shall commence on January 1, 2026, and remain in force pending the hearing and determination of the originating motion before this Honourable Court.”
