An Abuja High Court on Monday commenced hearing a lawsuit seeking to halt the implementation of Nigeria's newly enacted tax reform laws, scheduled to take effect on January 1, 2026.
The suit, filed by the Incorporated Trustees of the African Initiative for Abuse of Public Trusts, challenges the validity of four key Acts: the Nigeria Tax Act 2025, Nigeria Tax Administration Act 2025, Nigeria Revenue Service (Establishment) Act 2025, and Joint Revenue Board of Nigeria (Establishment) Act 2025.
Named as defendants are the Federal Republic of Nigeria, President Bola Ahmed Tinubu, the Attorney-General of the Federation, the Senate President, the Speaker of the House of Representatives, and the National Assembly.
Through a Motion Ex Parte, the plaintiff is requesting an interim injunction restraining the Federal Government, Federal Inland Revenue Service (FIRS), National Assembly, and related agencies from enforcing any provisions of the new laws pending the determination of the main suit.
The motion also seeks to bar the President from acting personally or through new agencies created under the laws from implementing the reforms in any state until further court orders.
Additional prayers include an accelerated hearing of the substantive case, shortening the time for defendants to respond to five days, and permission for substituted service of court processes via the Attorney General's office for the President and Federal Government, and through the Clerk of the National Assembly for legislative leaders.
The tax reforms, signed into law by President Tinubu, aim to consolidate existing tax legislation, modernize administration, boost compliance, and improve coordination between federal and state revenue bodies as part of efforts to broaden the tax net and reduce reliance on borrowing.
However, the laws have sparked widespread controversy, with critics including civil society, labour unions, and some state governments alleging post-passage alterations, insufficient consultation, threats to state fiscal autonomy, and added burdens on businesses and low-income earners.
The Presidency and National Assembly have rejected claims of tampering, asserting that the bills were properly passed, gazetted, and essential for economic stability amid high debt and falling oil revenues.
After hearing arguments from the plaintiff's counsel, the vacation judge adjourned the matter, scheduling a ruling on the interim injunction application for Tuesday, December 30, 2025.
The decision is eagerly anticipated by stakeholders, as it could determine whether the contentious tax regime proceeds as planned on New Year's Day.
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