Dino Melaye Threatens Lawsuit Against N’Assembly Over VAT Provisions In Tax Reform Acts

Former Kogi West lawmaker, Senator Dino Melaye, has written to the Clerk of the National Assembly, Kamoru Ogunlana, informing him of plans to sue the National Assembly over the enactment of the Nigeria Tax Act 2025 and the Nigeria Tax Administration Act 2025, which contain provisions relating to the imposition, administration, collection and distribution of Value Added Tax (VAT).

Melaye, in the petition, called for the immediate suspension and repeal of the VAT provisions contained in the Nigeria Tax Reform Acts, 2025.

He explained that his decision to approach the court was informed by the fact that the provisions sought to vest legislative and administrative authority over VAT in the Federal Government and its agencies.

Melaye argued that VAT is not provided for under either the Exclusive Legislative List or the Concurrent Legislative List in the Second Schedule to the Constitution of the Federal Republic of Nigeria, 1999 (as amended).

Writing through his law firm, the former lawmaker stated that upon the expiration of three months from the date of service of the notice, he would commence an action against the National Assembly before a court of competent jurisdiction.

The petition, signed by Ighodolo Aigbobo, Senior Associate at the firm, read: “We are legal practitioners to our client, Dino Melaye, a taxpayer, and we hereby issue this statutory Pre-Action Notice in compliance with Section 21 of the Legislative Houses (Powers and Privileges) Act, 2018.

“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.”

Explaining the basis for the intended action, the statement further read, “The National Assembly enacted the Nigeria Tax Act and Nigeria Tax Administration Act of both 2025, which contain provisions relating to the imposition, administration, collection and distribution of VAT.

“The said VAT provisions purport to vest legislative and administrative authority over VAT in the Federal Government and its agencies. By virtue of Section 4(7) of the Constitution, matters not included in the Exclusive or Concurrent Legislative Lists fall within the residual legislative competence of the states.

“By Section 1(3) of the Constitution, any law inconsistent with the provisions of the Constitution is void to the extent of its inconsistency. The VAT provisions of the Nigeria Tax Act and the Nigeria Tax Administration Act 2025 are therefore unconstitutional, ultra vires, null and void.

“The National Assembly enacted the Nigeria Tax Act and Nigeria Tax Administration Act of both 2025, which contain provisions relating to the imposition, administration, collection and distribution of VAT.

“The said VAT provisions purport to vest legislative and administrative authority over VAT in the Federal Government and its agencies. By virtue of Section 4(7) of the Constitution, matters not included in the Exclusive or Concurrent Legislative Lists fall within the residual legislative competence of the states.

“By Section 1(3) of the Constitution, any law inconsistent with the provisions of the Constitution is void to the extent of its inconsistency. The VAT provisions of the Nigeria Tax Act and the Nigeria Tax Administration Act 2025 are therefore unconstitutional, ultra vires, null and void.

“Dino Melaye, a taxpayer, and we hereby issue this statutory Pre-Action Notice in compliance with Section 21 of the Legislative Houses (Powers and Privileges) Act, 2018.

“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 letter read.