Nigeria: Court of Appeal orders Nigerian states to maintain status quo on VAT administration

The Court of Appeal’s order effectively halts the implementation and enforcement of both Rivers and Lagos state VAT laws.

Court of Appeal order

The Court of Appeal sitting in Abuja on 10 September 2021 ordered both Rivers and Lagos States to maintain “status quo” on the collection of value added tax (VAT) pending the resolution of the appeal of the Federal Inland Revenue Service (FIRS) on the Federal High Court’s judgment in the case: Attorney General for Rivers State v. Federal Inland Revenue Service and Attorney General of the Federation.

  • The Federal High Court sitting in Port Harcourt had earlier delivered a judgement nullifying the VAT Act Cap V1, LFN 2004 and dismissed the subsequent application for stay of execution of the judgment filed by the FIRS. Read TaxNewsFlash
  • Consequently, the Rivers State government had directed the immediate implementation of its VAT law. Read TaxNewsFlash
  • The Lagos State governor had also signed the state VAT bill into law before the Court of Appeal’s order was issued. Read TaxNewsFlash

The Court of Appeal’s order effectively halts the implementation and enforcement of both Rivers and Lagos state VAT laws, pending the decision of the appeal. Taxpayers may continue to file and remit their VAT payable to the FIRS pending the final resolution of the appeal by the Court of Appeal.

Read a September 2021 report [PDF 182 KB] prepared by the KPMG member firm in Nigeria


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