Exclusive: : Dino Melaye Asks NASS To Suspend VAT Implementation, Repeal Tax Reform Act 2025
A former Senator representing Kogi West senatorial district , Dino Melaye has demanded that the Federal Government suspend further implementation of the Value Added Tax (VAT) and that the National Assembly should withdraw the parliamentary instrument authorizing collection of VAT by repealing the Nigeria Tax Reform Act 2025.
The chieftain of the African Democratic Congress (ADC) threatened to immediately commence legal proceedings should the both the Federal Government and the National Assembly fail to comply within three months.
Senator Melaye in a letter dated December 15, 2025 addresses to the Clerk to The National Assembly titled “Pre- Action Notice of Intention to Sue the National Assembly Pursuant to Section 21 of the Legislative Houses (Powers and Privileges) Act 2004” notified the National Assembly of intention to commence action before a court of competent jurisdiction.
The letter a copy of which was sited by the Daily Times was acknowledged on Tuesday , December 16, 2025 by the office of the Clerk to the National Assembly.
The politician in the notification outlined what he described as incompetency of the National Assembly to legislate on the matter of Value Added Tax, adding that the parliament lack constitutional power to make such laws, thereby seeking the authority of the court to declare every action taken in respect of VAT as contained in both Nigeria Tax Act and Nigeria Tax Administration Act 2025 is constitutional, null and void.
He argued that “VAT is not provided for under the Exclusive Legislative List or the Concurrent Legislative List in the Second Schedule of the Constitution of the Federal Republic of Nigeria 1999 (as amended).
“By virtue of Section 4(7) of the Constitution, matters not included in the Exclusive or Concurrent Legislative Lists fall within the Residual Legislative List of the States
“By Section 1(3) of the Constitution, any law inconsistent with the provision of the Constitution is void to the extent of its inconsistency.
“The VAT provisions of the Nigeria Tax Act and Nigeria Tax Administration Act 2025, are, therefore, unconstitutional, ultra vires, null and void”.
Melaye, in the letter outlined relief he is seeking to include; “a declaration that by virtue of the provisions of Section 4(2)(4)(a) of the Constitution of the Federal Republic of Nigeria, the 1st and 2nd defendants lack the power to legislate over Value Added Tax.
“A declaration that the 1st and 2nd defendants have no constitutional authority to impose and administer VAT.
“A declaration that the legislation of the 1st and 2nd defendants on VAT is unconstitutional, hence it is null and void.
“A declaration that Section 3(1)(a)(v) in the Nigeria Tax Administration Act 2025 are void, except same is provided for by the Constitution.
“A declaration that only the House of Assembly of States has the constitutional powers to legislate on VAT.
“A declaration that the VAT provisions in the Nigeria Tax Act 2025 are inconsistent with provisions of Section 4 of the Constitution of the Federal Republic of Nigeria 1999 (as amended).
“A declaration of Perpetual Injunction restraining the defendants by themselves, servants, agents, proxies or whosoever, from demanding, enforcing, or otherwise in any manner dealing with VAT in any state of the Federation except through the state Government or agencies lawfully empowered by the state Government to administer and impose VAT under existing state VAT legislation”.
The Daily Times recalled that a few months back, the Federal Capital Territory (FCT) Internal Revenue Service (IRS) initiated a criminal action against Dino Melaye over his alleged failure to file mandatory tax returns for two years.
In the case before Court 17 of the Magistrate Court of the FCT in Wuse Zone 2, the FCT/IRS accused Senator Dino Melaye of failing to file annual tax returns for 2023 and 2024.
Pursuant to the complaint the court on August 21, issued a summons, requiring Melaye to appear before it on September 5.
The summons, with number: 0172 reads: “Whereas, your attendance is required to answer to a complaint of non filing of annual returns for 2023 and 2024 income year.”
The summons indicated that the alleged failure is contrary to the provision of Section 41 of the Personal Income Tax Act 2004 (as amended by Section 26 of the Finance Act 2021.
“You are hereby summoned to appear in person before the Magistrate Court of Wuse Zone 2 Court 17 on the 5th day of September 2025.”
