From Victor Osula, Abuja
Former Senator representing Kogi West Senatorial District in the 8th Senate, Dino Melaye, has challenged the constitutionality of the Nigeria Tax Act and the Nigeria Tax Administration Act 2025, particularly the provisions relating to the imposition, administration, collection and distribution of Value Added Tax (VAT).
Melaye, in a petition addressed to the Clerk of the National Assembly, Kamoru Ogunlana, notified the legislature of his intention to institute legal action unless the VAT provisions in the newly enacted tax laws are suspended and repealed.
According to the former lawmaker, the VAT clauses in the Nigeria Tax Reform Acts 2025, unlawfully vest legislative and administrative authority over VAT in the Federal Government and its agencies, contrary to the provisions of the 1999 Constitution of the Federal Republic of Nigeria (as amended).
He argued that VAT is not listed under either the Exclusive Legislative List or the Concurrent Legislative List in the Second Schedule to the Constitution, and therefore falls within the residual legislative powers reserved for the states.
Melaye stated that by virtue of Section 4(7) of the Constitution, matters not expressly allocated to the Federal Government or shared concurrently with states remain within the legislative competence of state governments. He further cited Section 1(3) of the Constitution, which provides that any law inconsistent with the Constitution is null and void to the extent of its inconsistency.
In a formal notice served on the National Assembly, the former lawmaker stated that he would approach a court of competent jurisdiction upon the expiration of three months from the date of service of the notice.
“Take notice that our client shall, upon the expiration of three months from the date of service of this notice, commence an action against the National Assembly before a court of competent jurisdiction”, the statement read.
Explaining the grounds for the intended legal action, Melaye said the National Assembly enacted the Nigeria Tax Act and the Nigeria Tax Administration Act of 2025, both of which contain provisions on VAT that seek to centralise its legislative and administrative control at the federal level.
He cited Section 4(7) of the Constitution, which provides that matters not included in the Exclusive or Concurrent Legislative Lists fall under the residual powers of the states. He also referenced Section 1(3) of the Constitution, which states that any law inconsistent with the provisions of the Constitution shall be void to the extent of its inconsistency.
Melaye maintained that the VAT provisions of the Nigeria Tax Reform Acts 2025 are unconstitutional and amount to an infringement on the fiscal autonomy of states. He maintained that the continued centralisation of VAT administration undermines fiscal federalism and constitutional governance, stressing that Nigerians deserve a tax system that respects constitutional boundaries and promotes true federalism.
As of the time of filing this report, the National Assembly had not issued any official response to the petition.
