Tax law controversy escalates as Reps minority, NANS seek halt, court fast-tracks challenge

The controversy surrounding Nigeria’s newly enacted tax laws escalated on Monday, as the Minority Caucus of the House of Representatives and the National Association of Nigerian Students (NANS) demanded an immediate suspension of implementation, while a Federal Capital Territory High Court moved to fast-track a legal challenge against the legislation.

The growing opposition has widened beyond the National Assembly, with prominent political figures, including former Vice President Atiku Abubakar and former Anambra State governor Peter Obi, also raising concerns over the content and process behind the tax reforms and calling for a comprehensive review.

At the heart of the dispute are allegations that the versions of the tax Acts gazetted by the Federal Government differ materially from those passed by the National Assembly and signed by President Bola Tinubu, sparking fears of constitutional violations if the laws are implemented.

The issue first surfaced two weeks ago when a Peoples Democratic Party lawmaker representing Kebbe/Tambuwal Federal Constituency of Sokoto State, Abdussamad Dasuki, told the House during plenary that the tax laws circulated by the executive did not reflect what lawmakers approved.

Dasuki alleged that the changes were made without parliamentary approval, warning that such alterations, if established, would breach the 1999 Constitution (as amended).

In response, the House constituted a seven-member ad hoc committee, chaired by Borno lawmaker Muktar Betara, to investigate the allegations and report back to the chamber.

In a statement issued on Monday, the Minority Caucus, led by Minority Leader Kingsley Chinda and jointly signed by Minority Whip Ali Isa, Deputy Minority Leader Aliyu Madaki and Deputy Minority Whip George Ozodinobi, said implementation of the tax laws should be halted pending the outcome of the probe.

The caucus noted that while tax reforms were generally welcomed, the seriousness of the allegations surrounding unlawful alterations could not be ignored.

“Ordinarily, the controversy would have been dismissed as needless, but it borders on accusations of unlawful alterations to laws passed by both chambers of the National Assembly and signed by the President,” the statement said.

The lawmakers stressed that the National Assembly is the lawful custodian of all Acts and explained that only authentic copies transmitted by the Clerk to the National Assembly should be gazetted.

They warned Nigerians to disregard any purported tax laws lacking the signatures of both the Clerk of the National Assembly and the President, describing any attempt to impose altered legislation as “an attack on the independence and constitutional role of the National Assembly.”

The caucus consequently urged the Federal Government to suspend enforcement until the Betara-led committee completes its work and certainty is restored.

The call for suspension was reinforced by NANS, which threatened nationwide protests should the Federal Government proceed with implementation from January 1, 2026.

In a statement signed by its National President, Olushola Oladoja, the students’ body described the rollout of a law under investigation as “untenable, reckless and unacceptable,” citing both the alleged discrepancies and what it called inadequate public sensitisation.

“A law whose authenticity is now under investigation cannot, in good conscience, be implemented,” NANS said, warning that failure to suspend the reforms by January 14, 2026, would trigger coordinated nationwide protests.

The association also criticised the Federal Inland Revenue Service for what it described as a failure to carry out an inclusive nationwide enlightenment campaign, faulting the reliance on selected social media influencers as elitist and disconnected from ordinary Nigerians.

Despite the mounting pressure, the Federal Government maintained that the reforms would proceed as scheduled.

Following a high-level meeting with President Tinubu on Friday, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, said implementation of the Nigeria Tax Act and the Nigeria Tax Administration Act would commence on January 1, 2026.

Meanwhile, the dispute has formally entered the courts.

On Monday, the High Court of the Federal Capital Territory, Abuja, granted accelerated hearing in a suit seeking to halt the implementation of the 2025 Tax Acts, but declined to grant interim injunctive relief.

The suit, filed by the Incorporated Trustees of African Initiative for Abuse Public Trustees against the Federal Republic of Nigeria and others, challenges alleged discrepancies in the tax laws and their proposed commencement date.

The Attorney-General of the Federation, the Senate President, the Speaker of the House of Representatives and the National Assembly were joined as respondents.

Ruling on an ex parte application argued by the plaintiff’s counsel, Nnamdi Mba, the vacation judge, Justice Bello Kawu, ordered accelerated hearing of the substantive suit and granted leave for substituted service on the defendants, but declined to restrain the Federal Government from proceeding with implementation.

The court adjourned hearing of the motion on notice to Wednesday, December 31.