Tax law row deepens as Reps, students seek halt, court steps in

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Opposition to Nigeria’s newly enacted tax laws intensified on Monday, setting the legislature, students and civil groups on a collision course with the Federal Government, as the Minority Caucus of the House of Representatives and the National Association of Nigerian Students (NANS) demanded an immediate suspension of implementation and a Federal Capital Territory High Court ordered accelerated hearing in a suit challenging the laws.

Criticism of the reforms has also come from prominent political figures, including former Vice President Atiku Abubakar and former Anambra State governor Peter Obi, both of whom have called for a review of the tax laws.

At the centre of the controversy are allegations that the versions of the tax Acts gazetted by the Federal Government differ materially from those passed by the National Assembly and assented to by President Bola Tinubu, raising concerns over possible constitutional violations if enforcement proceeds.

The dispute 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 authorisation, warning that such alterations, if established, would breach the 1999 Constitution (as amended).

In response, the House constituted a seven-man ad hoc committee, chaired by Borno lawmaker Muktar Betara, to investigate the allegations and report back for further legislative action.

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

While noting that the reforms were initially welcomed, the caucus said 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, explaining that only authentic copies transmitted by the Clerk to the National Assembly should be gazetted.

They urged Nigerians to disregard any purported tax laws lacking the signatures of the Clerk of the National Assembly and the President, warning that any attempt to impose altered legislation amounted to an attack on the constitutional role of the legislature.

The call for suspension was reinforced by NANS, which threatened nationwide protests if the Federal Government proceeds 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 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 law by January 14, 2026, would trigger coordinated protests nationwide.

The association also criticised the Federal Inland Revenue Service for what it described as a failure to conduct an inclusive nationwide enlightenment campaign, faulting reliance on selected social media influencers.

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

After 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 controversy has shifted to 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 named 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.

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