New Tax Laws: FG Dragged To Court Over January 2026 Implementation

The Federal Government has been dragged before the High Court of the Federal Capital Territory, Abuja, over its planned January 1, 2026 implementation of new tax laws.

The suit was filed by the Incorporated Trustees of the African Initiative for Abuse Public Trustees, who are challenging the legality and timing of the proposed tax regime.

In the action, the Federal Republic of Nigeria, President Bola Tinubu, the Attorney General of the Federation, the President of the Senate, the Speaker of the House of Representatives and the National Assembly Management are listed as respondents.

The plaintiffs are seeking an order of interim injunction restraining the Federal Government and other defendants from enforcing or giving effect to the new tax laws pending the hearing and determination of the substantive suit.

They also urged the court to grant an order for accelerated hearing, arguing that the planned January 1, 2026 take-off could have far-reaching legal and economic implications if allowed to proceed before the court determines the matter.

In a motion ex parte filed before the court, the group contended that it would suffer irreparable harm if the laws are implemented before the resolution of the case, stressing the need to preserve the status quo.

Although the court declined to make an immediate pronouncement on the application, it fixed January 5, 2026 for ruling on the ex parte motion.

The legal challenge comes amid growing public debate over the Federal Government’s tax reforms, with stakeholders raising concerns about their scope, timing and potential impact on citizens and businesses.

Efforts to get reactions from the Federal Government were unsuccessful as of the time of filing this report.

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