A High Court of the Federal Capital Territory (FCT) has refused to stop the Federal Government from implementing the new tax laws scheduled to take effect on January 1, 2026.
In a ruling delivered by Justice Bello Kawu, the court dismissed an ex parte application filed by the Incorporated Trustees of the African Initiative for Abuse of Public Trust, which sought to halt the enforcement of the laws pending the resolution of legal challenges against them.
Justice Kawu held that the court lacked the authority to restrain the implementation of legislation that has already been duly passed and signed into law, in the absence of concrete evidence of wrongdoing.
“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 any wrongdoing,” the judge ruled.
He added that at the preliminary stage of the case, it would be difficult, if not impossible, to establish wrongdoing without delving into the substantive issues before the court.
“Granting an injunction at this stage will amount to touching on the subject matter of the main suit,” Justice Kawu said, stressing that an ex parte application cannot be used to prevent the coming into force of an Act that has already been signed and gazetted.
According to the certified true copy of the ruling delivered on December 23 and made available on Wednesday, the court affirmed that the Nigeria Tax Act 2025 and other related tax laws would commence on January 1, 2026, and remain in force pending the determination of the substantive suit.
The court adjourned further hearing in the matter to January 9, 2026.
The plaintiff group had asked the court to halt the implementation of the new tax regime, citing ongoing controversies surrounding the laws. Listed as defendants in the suit are the Federal Republic of Nigeria, the President, the Attorney General of the Federation (AGF), the President of the Senate, the Speaker of the House of Representatives, and the National Assembly.
In the motion marked M/17240/2025, the group sought interim injunctions restraining the Federal Government, the Federal Inland Revenue Service (FIRS), the National Assembly, and other relevant agencies from enforcing 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.
Although the court declined to grant the interim injunctions, it approved substituted service of court processes on the defendants. It directed that documents meant for the Federal Government be served through the Office of the Attorney General of the Federation, while those for the Senate President, Speaker of the House of Representatives, and the National Assembly should be served through the Clerk of the National Assembly.