Femi Ashekun/
The Nigeria Employers’ Consultative Association (NECA) has secured a landmark judgment against the Federal Government, blocking its attempt to impose additional taxes on businesses through the introduction of excise duty on non-alcoholic, carbonated, and sweetened beverages.
The legal battle began in 2022 when NECA filed a suit challenging a circular from the Federal Government titled “Approval for the Implementation of 2022 Fiscal Policy Measures and Tariff Amendments” issued on March 1, 2022.
NECA argued that the circular, introduced by the Federal Ministry of Finance, was invalid, unjustifiable, and would create undue burdens on businesses.
The case also named the Nigeria Customs Service (NCS), the Honourable Minister of Finance, Budget, and National Planning, as co-defendants.
After three years of legal proceedings, Justice O.A. Egwuatu of the Federal High Court, Abuja, ruled in NECA’s favour, dismissing the Federal Government’s preliminary objection for lack of merit.
Delivering judgment, Justice Egwuatu declared that the circular issued by the Federal Ministry of Finance was “invalid and ultra vires.” The court further held that the Nigeria Customs Service (NCS) and the Ministry of Finance lacked the authority to impose excise duty through the disputed circular.
Additionally, the court ruled that the NCS could not demand transport and feeding allowances from NECA members.
Reacting to the judgment, NECA’s Director-General, Adewale Smatt-Oyerinde, lauded the ruling as a significant victory for organised businesses against official overreach and arbitrary taxation policies.
“This judgment is a victory for organised businesses and a reaffirmation of the judiciary’s role in curbing arbitrary actions by government agencies. It is a step forward in creating a business-friendly environment where enterprises can thrive without undue pressure,” Smatt-Oyerinde stated.
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