Former senator Dino Melaye has begun legal action against the National Assembly, challenging the constitutionality of Nigeria’s newly enacted 2025 tax framework and setting up a major test of federal taxing powers.
In a pre-action notice dated 15 December 2025 and received by the National Assembly a day later, Melaye’s legal team warned that court proceedings would commence after the mandatory three-month notice period unless the legislature withdraws key provisions of the Nigeria Tax Act 2025 and the Nigeria Tax Administration Act 2025.
The dispute centres on value-added tax (VAT). The 2025 laws place the administration, collection and distribution of VAT under federal control. Melaye argues that this violates the Constitution of the Federal Republic of Nigeria 1999, which, he says, does not list VAT under either the Exclusive or Concurrent Legislative Lists.
Relying on Section 4(7) of the constitution, the notice states that matters not expressly allocated to the federal or concurrent lists fall within the residual legislative powers of Nigeria’s states. It further cites Section 1(3), which renders any law inconsistent with the constitution void to the extent of its inconsistency.
If filed, the suit would ask the court to declare the VAT provisions of the 2025 tax laws illegal, null and unconstitutional.
The move reopens a long-standing national argument over fiscal federalism and revenue control, an issue that has repeatedly strained relations between the federal government and state authorities. Previous legal battles over VAT have produced conflicting judgments, leaving the question unresolved.
There was no immediate response from the National Assembly or the federal government. Legal observers say the case could have significant consequences for Nigeria’s tax system and the balance of power between Abuja and the states if it proceeds to a full hearing.
