January 7, 2026 l Dalena Reporters
ABUJA — A human rights lawyer has initiated a landmark legal challenge against the Federal Government of Nigeria and key legislative actors, arguing that recent fiscal practices including overlapping federal budgets and the enactment of a suite of new tax laws violate constitutional and statutory provisions designed to ensure transparency, accountability, and macroeconomic stability. Mr. Tilewa Oyefeso filed the suit as an Originating Summons at the Federal High Court in Lagos, naming the Senate President, the Speaker of the House of Representatives, the National Assembly, and the Attorney-General of the Federation as defendants.
In his petition, Oyefeso contends that the government’s fiscal regime has become “opaque and undisciplined,” particularly in its practice of operating multiple federal budgets concurrently — notably extending the capital components of the 2024 Appropriation Act into both 2025 and 2026 while the 2025 budget is simultaneously being implemented. He argues this contravenes the Medium-Term Expenditure Framework (MTEF) and the unified annual budgeting system envisioned under Nigeria’s fiscal laws, eroding fiscal predictability and undermining legal safeguards intended to promote prudent resource management.
The suit further takes aim at four recently enacted pieces of legislation collectively scheduled to take effect on January 1, 2026: the Nigeria Tax Act 2025, the Nigeria Revenue Service (Establishment) Act 2025, the Joint Revenue Board of Nigeria (Establishment) Act 2025, and the Nigeria Tax Administration Act 2025. Oyefeso argues that these laws, which overhaul Nigeria’s tax system, form part of an “unconstitutional fiscal framework” that prioritises revenue generation without strict adherence to constitutional constraints on borrowing, fiscal deficits, accountability, and transparency.
Central to the legal challenge is the claim that Section 16 of the 1999 Constitution which sets out Nigeria’s economic objectives, including equitable wealth distribution, macroeconomic stability and social justice provides the philosophical underpinning for fiscal and tax policy. The plaintiff maintains that tax reforms must align with these constitutional goals and with the Fiscal Responsibility Act 2007, including statutory limits on fiscal deficits and requirements for transparent reporting.
Oyefeso is also questioning the government’s alleged failure to publish quarterly budget implementation reports within 30 days of each quarter’s end, as mandated under Section 30 of the Fiscal Responsibility Act, a lapse he says makes it difficult for citizens and oversight institutions to track public expenditures effectively.
Among the reliefs sought, the suit asks the court to declare the four new tax laws unconstitutional, null and void for their alleged inconsistency with constitutional and statutory fiscal mandates. It also seeks a mandamus order compelling the National Assembly to urgently amend the Fiscal Responsibility Act to better align it with its objectives of prudent resource management, and a perpetual injunction restraining implementation of the contested tax laws pending such reforms.
The defendants have been given 30 days to enter an appearance and respond to the suit, which has yet to be assigned to a judge. Legal experts say the case could have far-reaching implications for Nigeria’s budgeting and tax governance, especially at a time when the government is rolling out comprehensive tax reforms that have already generated public controversy and opposition from labour and civil society groups.