Urgent Supreme Court Ruling Needed on Nigeria's VAT Dispute

Ubani has called for an urgent Supreme Court verdict regarding the Value Added Tax (VAT) dispute in Nigeria, which has remained unresolved since 2021. The controversy began when the River State government challenged the constitutional authority of the federal government to collect VAT.

The Federal High Court ruled in favor of River State, stating that VAT does not fall within the tax powers expressly granted to the federal government by the 1999 Constitution. Following this, River State enacted its own VAT law.

However, the Court of Appeal granted a stay of execution pending a final determination by the Supreme Court, which has yet to provide a definitive ruling five years later. Ubani noted that the prolonged judicial silence undermines legal certainty and allows temporary administrative arrangements to become entrenched.

He stressed the importance of a clear constitutional framework for VAT collection, as the current situation creates uncertainty for taxpayers and state budgets.