FCT High Court Rejects Bid to Halt Tax Acts, Says Ex Parte Order Cannot Stop Law Already Signed
A High Court of the Federal Capital Territory (FCT), Abuja, has refused to stop the Federal Government from proceeding with the implementation of Nigeria’s newly enacted tax laws scheduled to take effect on January 1, 2026.
The ruling was delivered by Justice Bello Kawu, who dismissed an ex parte application filed by the Incorporated Trustees of African Initiative for Abuse of Public Trust, seeking to halt the rollout of the tax regime.
In his decision, Justice Kawu held that the court lacked the authority to restrain the enforcement of legislation that had already been duly signed into law, particularly in the absence of clear evidence of wrongdoing.
The judge said the applicant failed to present sufficient material to justify the grant of an interim injunction against the Federal Government.
“I have carefully considered the application, the affidavit in support, and the submissions of learned counsel,” Justice Kawu stated.
“I am of the strong view that this court lacks the power to stop the implementation of a law already signed by the appropriate authority without concrete evidence of any wrongdoing.”
He noted that at the preliminary stage of the proceedings, the court must avoid delving into the substantive issues of the case.
“Granting an injunction at this stage would amount to touching on the subject matter of the main suit,” the judge said, adding that an ex parte application cannot be used to suspend the commencement of an Act that has already been signed into law or gazetted.
Justice Kawu further stressed that once legislation has been enacted, it can only be repealed by the National Assembly or have any offending provisions struck down by a court after full hearing.
“In view of the foregoing, the implementation of the Nigeria Tax Act 2025 and other related Acts shall commence on January 1, 2026, and remain in force pending the hearing and determination of the substantive suit,” the judge ruled.
The certified true copy of the ruling, delivered on December 23, was made available to journalists on Wednesday.
The court adjourned further hearing in the matter to January 9, 2026.
The suit was filed to challenge the planned implementation of several newly enacted tax laws amid ongoing controversies surrounding their passage and content.
Listed as defendants are 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 application marked M/17240/2025, the plaintiff sought interim injunctions restraining the Federal Government, the Federal Inland Revenue Service (FIRS), the National Assembly and their agencies from 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, pending the determination of an interlocutory motion.
The group also asked the court to restrain the President from implementing the laws across the federation, whether directly or through any agency created under the Acts.
While refusing to grant the interim reliefs, the court approved substituted service of court documents on the defendants.
Justice Kawu directed that documents meant for the Federal Government be served through the Office of the Attorney-General of the Federation, while those intended for the leadership of the National Assembly should be served through the Clerk of the National Assembly.
The ruling comes amid rising public debate and opposition over the new tax regime, even as the Federal Government maintains that the reforms are necessary for fiscal sustainability and economic growth.
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