A Federal Capital Territory (FCT) High Court has ruled that the Federal Government can implement the new tax laws from January 1, 2026, dismissing a legal challenge aimed at halting the reforms.
Justice Bello Kawu dismissed an ex-parte application filed by the Incorporated Trustees of African Initiative for Abuse of Public Trust, who sought to restrain the Federal Government from enforcing the newly enacted Tax Act 2025.
Defendants include the Federal Republic of Nigeria, the President, the Attorney-General of the Federation, the Senate President, the Speaker of the House, and the National Assembly.
In his ruling delivered on December 23, a certified true copy obtained in Abuja, the judge held that the court lacked the authority to stop the implementation of a law already signed by the proper authority without 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”, Justice Kawu stated, adding that granting an injunction at the preliminary stage would involve delving into the substance of the main suit.
The judge directed the Federal Government to proceed with implementing the Tax Act 2025 and related laws pending the substantive suit. He also granted the plaintiff’s request for substituted service on some defendants, ordering that court processes for the Federal Republic of Nigeria and the President be served via the Attorney-General of the Federation (AGF), and those for the Senate President, Speaker and National Assembly through the Clerk of the National Assembly.
The suit was adjourned to January 9, 2026, for further hearing. The plaintiffs had argued that controversies over the tax laws, including alleged differences from the version passed by the National Assembly, warranted a halt until issues were resolved.
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