Nigerian Government Sued at ECOWAS Court Over Alleged Altered Tax Laws

Lawsuit Filed Against Federal Government

The Federal Government of Nigeria is facing a lawsuit at the ECOWAS Community Court of Justice, filed by the civic advocacy group, the Network for the Actualisation of Social Growth and Viable Development (NEFGAD). The suit, designated ECW/CCJ/APP/10/26, was instituted on Monday, February 23, 2026. NEFGAD alleges that recent alterations to tax reform laws were unlawfully introduced after their passage by the National Assembly and subsequent presidential assent.

The group, represented by lead counsel Elvis Ejeta Esq., contends that these post-assent modifications breach Nigeria's obligations under the African Charter on Human and Peoples' Rights and various ECOWAS protocols. These protocols are cited as safeguarding fundamental rights such as fair hearing, equality, participation, and property.

Allegations of Unlawful Alterations

The core of NEFGAD's complaint centers on discrepancies found in the gazetted versions of tax legislation, particularly the Tax Administration Act, 2025, compared to the versions originally passed by the National Assembly.

Specific alleged alterations include:

• Tax Compliance Reporting Thresholds: The gazetted version reportedly lowered thresholds for individuals (from N50 million to N25 million) and companies (from N250 million to N100 million), contrary to the National Assembly's approved figures.
• Conditions for Tax Appeals: New provisions allegedly introduced a mandatory 20% deposit of disputed tax sums as a prerequisite for appealing decisions of the Tax Appeal Tribunal to the High Court.
• Expanded Enforcement Powers: The gazetted laws are accused of granting tax authorities expanded powers, including the ability to effect arrests through law enforcement agencies and sell seized assets without a court order.
• Definition of Federal Taxes: The removal of petroleum income tax and Value Added Tax (VAT) from the definition of federal taxes in the gazetted version is also contested.
• Currency for Petroleum Operations: A mandate for tax computation for petroleum operations in US dollars in the gazetted version contradicts the 'currency of the transaction' stipulated in the version passed by lawmakers.

This controversy first emerged in late 2025 when members of the House of Representatives flagged discrepancies between the passed and gazetted laws. An interim review by the House Minority Caucus subsequently confirmed these alterations.

Demands and Implications

NEFGAD is seeking several remedies from the ECOWAS Court, including:

• A declaration that the alleged alterations are unauthorized and violate Nigeria's international obligations.
• The annulment of the gazetted Tax Administration Act, 2025, and related Acts in their entirety, or the striking down of only the contested provisions.
• Recognition of only the original texts passed by the National Assembly and assented to by the President as valid law.
• An order compelling the government to produce certified true copies of the authentic Acts.
• Compensation for Nigerian citizens and businesses that may have suffered losses, including refunds of taxes or penalties, due to the enforcement of the disputed provisions.
• An injunction to restrain the Federal Government from enforcing the questioned provisions.

The group asserts that such unauthorized alterations undermine confidence in governance, threaten investor certainty, and strike at the heart of democratic order, separation of powers, and the rule of law. Prior to the lawsuit, NEFGAD had engaged President Bola Ahmed Tinubu and the leadership of the National Assembly, requesting an independent investigation into the matter.