Falana Warns New Tax Laws Cannot Take Effect Amid Legitimacy Dispute, Threatens Legal Action
Human rights lawyer and Senior Advocate of Nigeria (SAN), Femi Falana, has cautioned that the newly enacted tax laws cannot be enforced until lingering disputes over their legitimacy—arising from allegations of unauthorised insertions—are fully resolved, PulseNets learnt.
Falana made the assertion on Wednesday while addressing journalists in Ilawe-Ekiti, his hometown, where he faulted the Federal Government for failing to utilise the closing days of 2025 to address public concerns and release verified copies of the tax laws ahead of their scheduled commencement on January 1, 2026.
“If the government proceeds without doing that, it will only be courting serious trouble. There are interest groups already prepared to challenge the legitimacy of these laws,” Falana warned, according to information obtained by PulseNets.
The senior lawyer was reacting to growing allegations that certain clauses were unlawfully inserted into the tax bills passed by the National Assembly, raising concerns that the versions assented to by President Bola Tinubu on June 26, 2025, are not identical to those approved by lawmakers.
PulseNets reported that President Tinubu, in a personally signed statement issued on Tuesday, reaffirmed that the new tax laws, including those signed into law on June 26, 2025, would come into force as scheduled.
However, Falana maintained that implementation remains impossible until all doubts surrounding the authenticity of the laws are cleared.
“These laws cannot take effect while controversies over their legitimacy persist. There are serious questions about which version of the tax laws is authentic. Until Nigerians see clean, verified copies, talk of a commencement date is premature,” he said, speaking to PulseNets.
He further criticised the National Assembly for what he described as a disturbing lack of transparency, insisting that the legislature bears responsibility for the current controversy.
“There is a grave allegation that some provisions were smuggled into the tax laws—some have even called it forgery. However you describe it, the National Assembly has itself to blame,” Falana stated.
“In this era, it is unacceptable that citizens cannot freely access bills passed by the National Assembly and signed by the President. Why are these laws not published on the National Assembly’s official website?” he queried.
Falana also urged the government to properly educate Nigerians on the content of the tax laws and be ready to justify increased taxation, particularly amid prevailing economic hardship.
“If taxes are to be imposed, the federal, state, and local governments must be prepared to justify them. Tax revenue should be used to tackle poverty, unemployment, insecurity, and infrastructural decay,” he said.
“You cannot demand higher taxes from citizens who cannot afford school fees, are burdened by outrageous medical bills, or struggle daily to put food on the table,” Falana added.
The SAN also threatened legal action against the government over what he described as discriminatory elements within the new tax regime, particularly provisions that allegedly exempt certain highly profitable entities from taxation.
“Under these laws, some people and companies that make huge daily profits are excluded from paying taxes. Free trade zones exist where the wealthiest corporations operate, yet they are exempt from federal, state, and local taxes, including import duties,” he told PulseNets.
“True progressive taxation means the rich should pay more than the poor. What we have here is the exact opposite,” he argued.
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Describing the situation as unconstitutional, Falana concluded that legal remedies may be inevitable.
“This is unjust, discriminatory, and illegal. Any law that conflicts with the Constitution must be struck down. Excluding massively profitable companies from paying taxes is simply absurd,” he concluded.
