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Court Empowers Tinubu to Implement New Tax Law Effective Jan 1
An Abuja High Court has cleared the way for the implementation of Nigeria’s new tax regime scheduled to commence on January 1, 2026, dismissing a suit seeking to halt the programme.
The ruling gives the Federal government, the Federal Inland Revenue Service (FIRS) and the National Assembly full legal backing to proceed with the take-off of the new tax laws.
The suit was filed by the Incorporated Trustees of African Initiative for Abuse of Public Trustees, which dragged the Federal Republic of Nigeria, the President, the Attorney-General of the Federation, the President of the Senate, Speaker of the House of Representatives and the National Assembly before the court over alleged discrepancies in the recently enacted tax laws.
In an ex-parte motion, the plaintiff sought an interim injunction restraining the Federal Government, FIRS, the National Assembly and related agencies from implementing or enforcing the 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 determination of the substantive suit.
The group also asked the court to restrain the President from implementing the laws in any part of the federation pending the hearing of its motion on notice.
However, in a ruling delivered on Tuesday, Justice Kawu struck out the application, holding that it lacked merit and failed to establish sufficient legal grounds to warrant the grant of the reliefs sought.
The court ruled that the plaintiffs did not demonstrate how the implementation of the new tax laws would occasion irreparable harm or violate any provision of the Constitution, stressing that matters of fiscal policy and economic reforms fall squarely within the powers of government.
Justice Kawu further held that once a law has been duly enacted and gazetted, any alleged errors or controversies can only be addressed through legislative amendment or a substantive court order, noting that disagreements over tax laws cannot stop the implementation of an existing law.
Consequently, the court affirmed that there was no legal impediment to the commencement of the new tax regime and directed that implementation should proceed as scheduled from January 1, 2026.
The new tax regime is anchored on four landmark tax reform bills signed into law in 2025 as part of the Federal Government’s broader fiscal and economic reform agenda aimed at boosting revenue, simplifying the tax system and reducing leakages.
The laws — 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 — consolidate and replace several existing tax statutes, including laws governing companies income tax, personal income tax, value added tax, capital gains tax and stamp duties.
Key elements of the reforms include the harmonisation of multiple taxes into a more streamlined framework, expansion of the tax base, protection for low-income earners and small businesses, and the introduction of modern, technology-driven tax administration systems such as digital filing and electronic compliance monitoring.
The reforms also provide for the restructuring of federal tax administration, including the creation of the Nigeria Revenue Service, to strengthen efficiency, coordination and revenue collection across government levels.
While the Federal government has described the reforms as critical to stabilising public finances and funding infrastructure and social services, the laws have generated intense public debate, with some civil society groups and political actors alleging discrepancies between the versions passed by the National Assembly and those later gazetted.
These concerns sparked calls for suspension, re-gazetting and legal action, culminating in the suit dismissed by the Abuja High Court.
Reacting to the judgment, stakeholders described the ruling as a major boost for the reforms, saying it has removed all legal obstacles that could have delayed the implementation of the new tax framework.
The Chief Judge of Rivers State, Justice Simeon Amadi, has declined to set up a judicial panel to investigate Governor Siminalayi Fubara, citing a court order.
The Rivers State House of Assembly had requested that Amadi set up a seven-member panel to probe Fubara and his deputy, Ngozi Odu, over allegations of gross misconduct.
However, in a letter dated January 20 and addressed to the Speaker of the House, Martins Amaewhule, the chief judge cited two court orders barring him from receiving, forwarding, or considering any requests to form such a panel.
The judge stated that the orders were served on his office on January 16, 2026 and remain in force.
The chief judge emphasised that constitutionalism and the rule of law require all authorities to obey subsisting court orders, irrespective of their perception of the orders’ validity.
He referenced legal precedents, noting that in a similar case in 2007, the Chief Judge of Kwara State was condemned for ignoring a restraining court order when setting up an investigative panel, a decision later voided by the Court of Appeal.
Justice Amadi further observed that the Speaker has already filed an appeal against the court orders at the Court of Appeal, adding another layer to the ongoing legal proceedings surrounding the allegations.
“By the doctrine of ‘lis pendens’, parties and the court have to await the outcome of the appeal,” he said.
Justice Amadi further stated that the existence of the injunctions and the pending appeal had effectively tied his hands.
“In view of the foregoing, my hand is fettered, as there are subsisting interim orders of injunction and appeal against the said orders. I am therefore legally disabled at this point from exercising my duties under Section 188(5) of the Constitution in the instant,” he said.
The chief judge appealed to the lawmakers to recognise the legal constraints surrounding the matter.
Justice Amadi, therefore, urged the state assembly to be “magnanimous enough to appreciate the legal position of the matter.”
The Federal High Court sitting in Abuja has reportedly affirmed the removal of Julius Abure as the national chairman of the Labour Party, LP.
The Court also ordered the Independent National Electoral Commission, INEC, to recognize the Senator Nenadi Usman-led National Caretaker Committee as the party’s lawful leadership.
The development was disclosed by human rights lawyer, Inibehe Effiong, in a post on X, where he said he was present at the Federal High Court when the judgment was delivered in a related case.
Effiong stated that Justice Lifu delivering judgment on Wednesday, upheld the Nenadi Usman-led committee as the only valid and lawful leadership of the Labour Party, reaffirming that Abure’s tenure had elapsed in line with an earlier Supreme Court judgment.
The court consequently directed INEC to immediately recognize Nenadi Usman as the party’s leader.
He wrote: “I am currently before the Federal High Court in Abuja for a case. I listened to judgement delivered in an another case.
“Honourable Justice Lifu has just upheld Senator Nnadi Esther Usman-led National Caretaker Committee as the only valid and lawful leadership of the Labour Party.
“The Judge reaffirmed that by the Supreme Court’s judgement, Julius Abure’s tenure had since elapsed.
The Super Eagles of Nigeria defeated Egypt 4-2 on penalties to win the Africa Cup of Nations (AFCON) 2025 third-place playoff on Saturday.
Goalkeeper Stanley Nwabali proved the hero of the night with two crucial saves during the shootout, including one from Egyptian star Mohamed Salah.
Ademola Lookman then calmly converted the decisive penalty to secure the bronze medal —Nigeria’s ninth third-place finish in AFCON history.
With neither side able to break the deadlock in a cagey second half, the game ended 0-0, sending the contest directly to penalties.
Despite Fisayo Dele-Bashiru missing Nigeria’s first kick, Nwabali’s immediate saved from Egypt’s first two attempts shifted the momentum.
