Dino Melaye Issues Pre‑Action Notice to Challenge VAT Provisions in Nigeria Tax Reform Acts 2025
Former Kogi West Senator, Dino Melaye, has formally notified the Clerk of the National Assembly, Kamoru Ogunlana, of his intention to institute legal proceedings against the National Assembly over the enactment of the Nigeria Tax Act 2025 and the Nigeria Tax Administration Act 2025, particularly the provisions relating to the imposition, administration, collection, and distribution of Value Added Tax (VAT).
In his petition, Melaye demanded the immediate suspension and repeal of the VAT provisions contained in the Acts, arguing that they unlawfully vest legislative and administrative authority over VAT in the Federal Government and its agencies.
According to Melaye, VAT is neither listed under the Exclusive Legislative List nor the Concurrent Legislative List in the Second Schedule to the 1999 Constitution (as amended). He contended that, by virtue of Section 4(7) of the Constitution, matters not expressly included in those lists fall within the residual legislative competence of the states.
Writing through his law firm, Melaye served a statutory Pre‑Action Notice pursuant to Section 21 of the Legislative Houses (Powers and Privileges) Act, 2018, indicating that he will commence an action against the National Assembly before a court of competent jurisdiction upon the expiration of three months from the date of service.
The petition, signed by Ighodolo Aigbobo, Senior Associate at the firm, stated:
“The VAT provisions of the Nigeria Tax Act and the Nigeria Tax Administration Act 2025 purport to vest legislative and administrative authority over VAT in the Federal Government and its agencies. By Section 1(3) of the Constitution, any law inconsistent with the Constitution is void to the extent of its inconsistency. Accordingly, the VAT provisions are unconstitutional, ultra vires, null and void.”
Melaye, described as a taxpayer in the petition, maintained that the National Assembly exceeded its constitutional powers by legislating on VAT, a matter reserved for the states. He vowed to pursue judicial redress to invalidate the provisions and restore constitutional balance in Nigeria’s fiscal federalism.
