Policy and Legal Advocacy Centre (PLAC) has expressed deep concern over credible findings suggesting that key provisions of Nigeria’s recently enacted Tax Reform Act may have been altered after passage by the National Assembly and assent by the President. If established, these alterations raise fundamental questions about legislative integrity, constitutionalism, and the rule of law.
Why This Matters
Law-making authority in Nigeria rests exclusively with the National Assembly. Any post-passage modification of a bill, outside constitutionally prescribed procedures, undermines democratic governance, separation of powers, and public confidence in the law.
PLAC notes that although the National Assembly has indicated that the law has been re-gazetted, there is no legal procedure that permits defects in an already-passed law to be cured through re-gazetting.
What Triggered the Controversy?
Public concern erupted following allegations by lawmakers that the gazetted version of the Tax Reform Act differs materially from the version debated and passed by both chambers of the National Assembly. This prompted the legislature to reportedly set up an internal committee to investigate possible post-passage alterations.
While the Executive has denied any wrongdoing, findings attributed to the legislative review committee point to six major deviations that go far beyond clerical or editorial corrections.
Key Findings at a Glance
According to the reported findings:
- Substantive provisions were inserted, deleted, or modified after passage
- Oversight, accountability, and reporting safeguards approved by Parliament were removed
- New coercive enforcement and fiscal powers appeared without legislative approval
- The changes cannot be classified as clerical corrections
These actions, if confirmed, would constitute a grave breach of Sections 4 and 58 of the 1999 Constitution.
The Six Major Areas of Concern
1. Altered statutory cross-references
Changes in section references could significantly affect reporting and
compliance obligations for taxpayers.
2. Removal of the petroleum income tax and VAT from federal administrative powers
This creates internal inconsistencies and raises serious constitutional and federalism concerns, particularly around VAT administration.
3. Mandatory US-Dollar-only tax computation for petroleum
operations
A major policy shift from the approved “currency of transaction” standard,
increasing FX exposure and compliance burdens.
4. New 20% deposit requirement before tax appeals can be
heard
A previously unapproved condition that restricts access to justice and may
violate constitutional guarantees.
5. Expanded garnishee powers without court oversight
Enforcement actions may now occur without a High Court order, weakening
due-process protections.
6. Authority for the tax service to sell taxpayers’ assets
without court approval
This significantly reduces judicial oversight and increases the risk of abuse.
Why the Implications Are Serious
Beyond the substance of tax administration, the central issue is process legitimacy. These changes reflect policy decisions, not drafting corrections—and therefore require full legislative approval.
Allowing post-passage alterations sets a dangerous precedent that threatens legislative supremacy and weakens Nigeria’s democratic institutions.
PLAC’s Calls to Action
PLAC calls for:
- Immediate public release of the clerk-certified “as-passed” version of the Tax Reform Bill
- A transparent, independent review of the bill’s journey from passage to assent
- Formal corrective legislative action where discrepancies are established
- Strong institutional safeguards to prevent any future post-passage alterations
Final Word
Nigeria’s democracy depends on strict fidelity to constitutional processes. Regardless of policy intent, no law can stand if it was not enacted in accordance with the Constitution. Any post-passage alteration of legislation must be treated as a constitutional red flag, not an administrative oversight.
The National Assembly must act decisively to defend its authority and uphold the rule of law.