The Nigeria Employers’ Consultative Association (NECA) has secured a favourable judgment for its members at the Federal High Court, Abuja.

In a suit filed in 2022, following a circular from the Federal Government, which imposed additional tax burdens on businesses. The case was against the government on the excise duty on non-alcoholic, carbonated, and sweetened beverages.
The defendants in the case were Nigerian Customs Service Board and the Minister of Finance, Budget and National Planning.

Read also: Kano division of Nigerian Customs generates N8bn in 6 months

After three years of legal fireworks, the court dismissed the 2nd defendant’s preliminary objection for lack of merit. While delivering judgment on the substantive case, the court held in summary that the circular issued by the 2nd defendant (Federal Ministry of Finance) was invalid and ultra-vires the powers of the 2nd defendant; and the 1st defendant (the Customs Service) was not entitled to demand transport and feeding allowances from the plaintiffs (NECA members).

In summary, the court gave judgment in NECA’s favour and declared that the circular entitled “Approval for the Implementation of 2022 Fiscal Policy Measures and Tariff Amendments,” dated March 1, 2022 issued by the 2nd defendant (Honourable Minister of Finance, Budget and National Planning) is invalid and ultra-vires the powers of the 2nd defendant.

This is another victory for organised businesses against official arbitrariness and unfortunate attempts to impose additional burdens on businesses.

SENIOR ANALYST - LABOUR/LAGOS STATE

Join BusinessDay whatsapp Channel, to stay up to date

Open In Whatsapp