An Abuja High Court presided over by Justice Bello Kawu on Tuesday, 30 December, 2025 cleared the Federal Government, the Federal Inland Revenue Service (FIRS), and the National Assembly to proceed with the implementation of the new tax regime scheduled to take effect on January 1, 2026.
The court’s decision followed the dismissal of a suit seeking to halt the commencement of the new tax laws.
The suit was filed by the Incorporated Trustees of the African Initiative for Abuse Public Trustees against 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 over alleged discrepancies in the tax legislation.
In a motion ex parte, the plaintiffs had sought an interim injunction restraining the Federal Government, FIRS, the National Assembly, and their agencies from implementing or 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 hearing and determination of the substantive suit.
They also requested an order restraining the President and relevant federal agencies from implementing the provisions of the Acts in any state of the federation pending the determination of a motion on notice.
However, in a ruling delivered on Tuesday, 30 December, 2025 Justice Kawu struck out the application, holding that it lacked merit.
The court declined to grant the injunction sought and directed the Federal Government to proceed with the full implementation of the tax laws as scheduled.
Justice Kawu ruled that the plaintiffs failed to establish sufficient legal grounds for the reliefs sought and did not demonstrate how the implementation of the new tax laws would cause irreparable harm or violate constitutional provisions.
He emphasised that fiscal policy and economic reforms fall within the powers of the government as provided by law.
The court further held that once a law has been validly enacted and gazetted, any perceived errors can only be addressed through legislative amendment or a substantive court order, noting that disputes over tax laws do not automatically halt their implementation.
Consequently, the court affirmed that there was no legal impediment to the commencement of the new tax regime and ordered that its implementation should proceed from January 1, 2026.
Reacting to the judgment, stakeholders described the ruling as a major boost, saying it has removed obstacles that could have delayed the implementation of the new tax framework.
