Tax reform crisis deepens as Reps caucus, students demand suspension, court battle opens Wednesday

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

Opposition from figures like forner vice president Atiku Abubakar, former Anambra State governor, Peter Obi, among others have also voiced their concerns over the tax laws and called for review.

At the centre of the controversy are allegations that the tax Acts gazetted by the Federal Government are materially different from those passed by the National Assembly and assented to by President Bola Tinubu, raising fears of constitutional breaches if enforcement proceeds.

The storm broke 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 versions of the tax laws circulated by the executive did not tally with what lawmakers approved.

Dasuki alleged that the alterations were made without parliamentary authorisation, warning that such changes, if true, would amount to a violation of the 1999 Constitution (as amended).

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

In a strongly worded statement on Monday, 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 the implementation of the tax laws must be suspended pending the outcome of the probe.

The caucus said while the reforms were initially welcomed, the gravity of the allegations surrounding unlawful alterations could not be ignored.

“Ordinarily, the controversy would have been dismissed as needless, but the cause of the controversy borders on accusations of unlawful alterations to the laws as passed by both chambers of the National Assembly and signed by the President,” the statement said.

The lawmakers stressed that the National Assembly remains the lawful custodian of all Acts, noting that authentic copies are transmitted for gazetting by the Clerk to the National Assembly.

“We therefore call on Nigerians to disregard any purported tax laws being circulated without the signature of the Clerk of the National Assembly and the President and Commander-in-Chief,” the caucus warned, describing any attempt to impose altered laws as “an attack on the independence and constitutional role of the National Assembly.”

The caucus urged the Federal Government to halt enforcement of the laws until the Betara-led committee concludes its investigation and clarity is restored.

The legislative pushback was echoed 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 alterations and what it called a glaring failure of 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 across the country.

The association accused the Federal Inland Revenue Service of failing to carry out an inclusive nationwide enlightenment campaign, criticising reliance on selected social media influencers as “elitist and exclusionary.”

Despite mounting political and public pressure, the Federal Government insisted the reforms remain on track.

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 still commence on January 1, 2026.

Meanwhile, the dispute has moved to the courts.

On Monday, the High Court of the Federal Capital Territory, Abuja, granted accelerated hearing in a suit seeking to stop the implementation of the 2025 Tax Acts, but declined to issue 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.

Named as respondents are the Attorney-General of the Federation, the Senate President, the Speaker of the House of Representatives and the National Assembly.

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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