Segun Atanda/
Former Kogi West senator, Dino Melaye, has formally challenged the authority of the Federal Government to impose and administer Value Added Tax (VAT) issuing a pre-action notice that could set the stage for another major constitutional battle over revenue control in Nigeria.
In a notice issued through his law firm, Melaye called on the National Assembly to suspend and repeal provisions relating to VAT in both the Nigeria Tax Act 2025 and the Nigeria Tax Administration Act 2025, signed into law by President Bola Tinubu on June 26.
The pre-action notice was served on the leadership of the National Assembly, warning that failure to act within three months would trigger a lawsuit seeking far-reaching judicial declarations.
Melaye’s central argument is that the 1999 Constitution does not grant the Federal Government the power to impose or collect VAT.
According to the notice, VAT is not listed under either the Exclusive Legislative List or the Concurrent Legislative List, which, he argues, means taxing powers over consumption taxes reside with state governments.
On this basis, Melaye is asking the courts to declare the VAT provisions in the new tax laws unconstitutional, illegal, null and void.
Beyond seeking to block future enforcement, the former senator is also demanding refunds of VAT already collected by the Federal Government over the years, a move that, if successful, could significantly disrupt Nigeria’s fiscal structure and revenue sharing arrangements.
The notice indicates that Melaye intends to ask the court to restrain federal authorities from further implementing or enforcing VAT-related provisions pending a final determination of the dispute.
The development has quickly attracted attention on social media, with posts on X describing the move as a direct legal challenge to the 2025 tax reforms.
One widely shared post stated that Melaye wants the court to declare the Nigeria Tax Administration Act illegal and unconstitutional, attaching copies of the pre-action notice and related legal documents.
Legal analysts say the challenge revives a long-running constitutional debate that reached national prominence in 2021, when Rivers State won a landmark judgment at the Federal High Court affirming the power of states to collect VAT within their territories.
That decision was later upended on appeal, restoring federal control and reinforcing the status quo.
Observers note that Melaye’s action appears to be an attempt to reopen the issue, this time targeting newly enacted tax legislation.
While experts describe the move as ambitious, they acknowledge that a favourable ruling could have profound implications for Nigeria’s fiscal federalism, potentially reshaping how consumption taxes are imposed, collected and shared among the three tiers of government.
Some analysts believe any final resolution may not come until 2026, given the likelihood of appeals and the constitutional weight of the issues involved.
For now, the Federal Government and the National Assembly have not publicly responded to the pre-action notice.
If the matter proceeds to court, it is expected to test the limits of federal taxing powers once again and reignite debates over state autonomy, revenue control and constitutional interpretation in Nigeria.
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