Legal challenge threatens new tax regime ahead of January 1, 2026 take-off

• NANS demands halt, issues 14-day protest ultimatum

Opposition to Nigeria’s new tax regime intensified yesterday as an Abuja High Court began hearing a suit seeking to halt the implementation of the legislation scheduled to take effect on January 1, 2026.

The suit was filed by the Incorporated Trustees of the African Initiative Against Abuse of Public Trust 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.

In the action, the plaintiff challenges what it describes as discrepancies in the new tax laws and asks the court to halt their implementation pending the determination of the substantive suit.

Through a motion ex parte, the applicant is seeking an interim injunction restraining the Federal Government, the Federal Inland Revenue Service, the National Assembly and their agencies from implementing, executing 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.

The plaintiff is also asking the court to restrain the President, either personally or through any federal agency created under the new tax laws, from enforcing the Acts in any state of the federation pending the hearing and determination of the motion on notice.

In addition, the applicant is seeking an order for accelerated hearing of the substantive originating summons, as well as a request that the time allowed for the defendants to file counter-affidavits be abridged to five days.

The suit further seeks leave of court to serve court processes on the President, the Attorney-General of the Federation and the leadership of the National Assembly through substituted means, including service at the Federal Ministry of Justice and the Office of the Clerk of the National Assembly. It also asked the court to deem such substituted service as proper and valid.

The court subsequently fixed Monday for ruling on the application for an interim injunction. The court action came amid mounting public opposition to the tax reforms, with student leaders and other groups stepping up pressure on the Federal Government.

The National Association of Nigerian Students (NANS) called for an immediate suspension of the reforms, issuing a 14-day ultimatum to the authorities and warning that failure to address its concerns would trigger nationwide protests.

In a statement issued yesterday and made available to The Guardian, the association’s National President, Olushola Oladoja, said NANS was acting to protect the interests of students and the wider Nigerian public.

While acknowledging the importance of tax reforms in strengthening national revenue and economic stability, NANS said the current approach to implementation was “fundamentally flawed, poorly communicated, and constitutionally questionable”, warning that it could deepen resentment and distrust between citizens and government authorities.

Oladoja said there was palpable fear and widespread suspicion across the country that the law, if implemented without proper understanding, would further burden citizens already grappling with severe economic hardship.

He called for a well-structured, thorough and far-reaching nationwide public enlightenment campaign through inclusive, community-based engagements. He also urged the National Assembly to conclude its review and investigation into alleged alterations to the law and make its findings public.

“The Tax Reform Law will weaken the viability and capability of many businesses and private Nigerians to cope with the economic shocks that will accompany this policy, particularly when poor citizen education about the law affects the planning and execution of planned financial projects in the coming year,” he said. “A reform of this magnitude requires extensive public education, clarity, and trust-building mechanisms, of which none have been adequately provided.”

Oladoja criticised the Federal Inland Revenue Service for what he described as a failure to design and execute an effective and inclusive public enlightenment process.

“It is a shame that the Federal Inland Revenue Service has failed woefully in its responsibility to design and execute an effective, inclusive, and nationwide public enlightenment process,” he said, faulting the use of social media influencers as ambassadors for the reform.

He said the approach was “very linear, reductionist, isolationary, exclusionary, and elitist”, arguing that it ignored the realities of many Nigerian households without the capacity to engage effectively on social media.

He added that it was more troubling that structured grassroots organisations such as NANS and the National Youth Council of Nigeria were not engaged, despite their extensive reach across communities nationwide.

According to Oladoja, the failure to involve community-based associations, student unions, civil society groups and traditional structures through town-hall meetings and grassroots sensitisation had fuelled the backlash against the law.

The Guardian reports that other groups calling for the suspension of the law include the Minority Caucus of the House of Representatives, the Nigerian

Bar Association and the Nigeria Labour Congress.
Minority caucus seeks suspension of tax laws over alleged post-passage alterations. (Guardian)