A lawyer and former Senator representing Kogi West in the National Assembly, Senator Dino Melaye has filed a suit seeking to declare the provisions on Value Added Tax (VAT) in the Nigerian Tax Administration Act, 2025, null and void.
The suit came on the heels of a pre-action letter addressed to the Clerk of National Assembly, dated December 15, 2025, in which Melaye threatened to institute legal action against the National Assembly over the enactment of the 2025 Tax Laws at the end of three-month period.
The former lawmaker had contended that VAT provisions in the Tax Acts enacted by the National Assembly vest legislative and administrative authority over VAT in the Federal Government and its agencies, contending that VAT is not provided for under the Exclusive and Concurrent Lists in the Constitution of the Federal Republic of Nigeria 1999 (as amended).
Following the expiration of the three-month period, Melaye, through his Origination Summons filed by his law firm, Dino Melaye Law Firm, before the Abuja Division of the Federal High Court, marked FHC/ABJ/CS/1425/2026, joined the National Assembly, the Attorney-General of the Federation and the Nigeria Revenues Service (NRS) as defendants.
While arguing that only states of the federation are empowered by law to legislate on matters relating to VAT, Melaye wants the court to determine whether having regard to provisions of Section 4(2) of the 1999 Constitution of the Federal Republic of Nigeria (as amended), the National Assembly has constitutional competence to legislate on VAT, “same not being an item contained in Part I of the Second Schedule to the Constitution (Exclusive List)”.
He further wants the court to determine: Whether Section 4(4)(a) of the Constitution, read together with Part II of the Second Schedule thereto (Concurrent List), empowers the National Assembly to legislate on VAT.
“Whether Item 58 of Part I of the Second Schedule to the Constitution, which relates to stamp duties, can be construed to include or encompass VAT
“Whether the VAT provisions in the Nigerian Tax Administration Act, 2025, are inconsistent with provisions of the Constitution. Whether by virtue of Section 4 of the Constitution the defendants have constitutional authority to impose or administer VAT under the new Tax Act.”
Melaye, who served in the 8th Senate between 2015 and 2019, therefore, sought a declaration of the court that “by virtue of Section 4(2)(4)(a) of the Constitution of the Federal Republic of Nigeria 1999 (as amended), the National Assembly and the Attorney-General of the Federation lack powers to legislate on value added tax”.
“A declaration that the National Assembly and the Attorney-General of the Federation have no constitutional authority to impose and administer value added tax.”
He further sought the court’s declaration that the National Assembly’s legislation on VAT is unconstitutional, hence it is null and void.
Also, “A declaration that Section 3+1)(a)(v) of the Nigerian Tax Administration Act, 2025, are void, except same is provided for by the Constitution of the Federal Republic of Nigeria, 1999 (as amended) or any other law made by competent legislature.
“A declaration that only the House if Assembly of States has the constitution powers to legislate on value added tax.”
The plaintiff, therefore, sought “An order directing the defendants to refund forthwith to the state governments all sums collected by them pursuant to Section 3(1)(a)(v) of the Nigerian Tax Administration Act, 2025 as VAT.”
While urging the court to grant all the.reliefs sought in the case, Melaye argued that VAT is neither an item on both Exclusive and Concurrent Lists nor falls within any federal taxing powers.
He added that VAT law is a residual matter vested in the states and not within federal legislative competence.
According to him, “Upon proper construction of Section 4(1) – (7) and the Second Schedule to the Constitution of the Federal Republic of Nigeria 1999 (as amended), Value Added Tax is not within federal legislative competence.
“It is neither an item on the Exclusive List nor the Concurrent List; it does not fall under any constitutionally enumerated federation taxing powers; and it is a residual matter reserved for states.
“The VAT provisions in the Nigerian Tax Reform Act, 2025 are therefore unconstitutional, null and void.”
