The January 1, 2026, start date of the new tax regime recently approved by President Bola Tinubu has been upheld by an FCT High Court.
Due to alleged inconsistencies in the tax laws, the Incorporated Trustees of the African Initiative for Abuse of Public Trust filed a lawsuit seeking an interlocutory injunction against the President of the Federal Republic of Nigeria, the Attorney General of the Federation, the President of the Senate, the Speaker of the House of Representatives, and the National Assembly.
Justice Kawu Bello stated, “I have considered the application together with the affidavit in support,” in the decision that the court’s registrar signed on December 30, 2025. I am of the firm opinion that the court lacks the authority to halt the implementation of a law that has already been signed by the relevant authority in the absence of specific proof of any wrongdoing. I have also taken into consideration the submission of the learned counsel for the claimant/applicant and the judicial authorities cited.
The judge stated that the law can only be repealed by the legislators or any offending section set aside by the court, and that an ex parte application cannot be used to set aside the implementation of any act that has already been passed and gazetted.
The judge declared, “In light of the aforementioned, the implementation of the Tax Act 2025 and other related acts will commence on January 1, 2026, and continue to be in force pending the hearing and determination of the originating motion before this court.”
In an earlier ex parte application, Justice Bello Kawu ordered an expedited hearing of the substantive originating summons and an order allowing the CSO to serve the defendants by alternative means, deeming such service appropriate and legitimate by delivering it in their regular offices.
In order to prevent the federal government, the Federal Inland Revenue Service (FIRS), the National Assembly, or any of its agencies from implementing, carrying out, and/or enforcing any of the provisions of the gazetted Nigeria Tax Act, 2025; the Nigeria Tax Administration Act, 2025; the Nigeria Revenue Service (Establishment) Act, 2025; or the Joint Revenue Board of Nigeria (Establishment) Act, 2025, the motion on notice.
The lawsuit will be heard on January 9, 2026.
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