ECONOMY
Legal Battle Clouds January 1, 2026 Takeoff of Nigeria’s New Tax Regime as Abuja High Court Weighs Injunction
Fresh legal uncertainty has emerged over the planned January 1, 2026 implementation of Nigeria’s newly enacted tax laws, following the commencement of court proceedings at the Abuja High Court seeking to halt the sweeping reforms.
On Monday, the court began hearing a suit challenging the validity and enforceability of the tax legislations recently passed by the National Assembly and signed into law by President Bola Ahmed Tinubu. The action was instituted by the Incorporated Trustees of African Initiative for Abuse Public Trustees, which is questioning alleged discrepancies and irregularities in the newly gazetted tax laws.
The suit lists a wide array of top government institutions and officials as defendants, including the Federal Republic of Nigeria, President Bola Ahmed Tinubu, the Attorney-General of the Federation, the President of the Senate, the Speaker of the House of Representatives, and the National Assembly, among others.
At the heart of the legal challenge is a Motion Ex Parte in which the plaintiff is urging the court to issue an interim injunction restraining the Federal Government, the Federal Inland Revenue Service, the National Assembly, and all relevant agencies from implementing or enforcing any provisions of the new tax regime pending the determination of the substantive suit.
The laws targeted in the application include the Nigeria Tax Act, 2025; the Nigeria Tax Administration Act, 2025; the Nigeria Revenue Service (Establishment) Act, 2025; and the Joint Revenue Board of Nigeria (Establishment) Act, 2025. Collectively, these statutes form the backbone of the federal government’s ambitious tax reform agenda aimed at restructuring revenue administration and improving fiscal efficiency.
Beyond seeking a general suspension, the applicant is also asking the court to restrain the President, either personally or through any agency created under the new tax framework, from implementing the provisions of the Acts in any state of the federation until the motion on notice is fully heard and determined.
In a bid to fast-track the case, the plaintiff further requested an accelerated hearing of the substantive originating summons. The application also seeks to abridge the time allowed for the defendants to file their counter-affidavits to five days and to permit substituted service of court processes through the Office of the Attorney-General of the Federation and the Clerk of the National Assembly.
After listening to submissions from the parties, the court adjourned the matter and fixed Monday for its ruling on the application for an interim injunction.
The impending decision is being keenly watched by the Presidency, the National Assembly, fiscal authorities, and Nigerians at large, as it is expected to determine whether the controversial tax reforms will proceed as scheduled at the start of 2026 or face a temporary legal freeze.