NIGERIA Trends and Developments Contributed by: Ituah Imhanze, Daze Nga, Damilola Raji and Ozioma Soludo, KENNA
improve revenue collection and modernise dispute resolution mechanisms. While these reforms are geared at aligning Nigeria more closely with global fiscal practices, they are expected to generate a wave of litigation upon their implementation in 2026. Some of the areas to look out Disputes are expected to arise over the allocation of taxing powers between the federal and state gov- ernments. Nigeria’s federal structure has historically produced tension over value-added tax (VAT), stamp duties, and personal income tax. The new laws have attempted to resolve some of these overlaps, but they have also created new fronts for constitutional chal- lenges. State governments could contend that some provi- sions erode their fiscal autonomy, while businesses operating across multiple states may dispute provi- sions that expose them to conflicting tax demands. These questions are expected to inevitably reach the appellate courts, testing once again the balance of Nigeria’s federalism. Corporate tax litigation Large corporations, particularly those in the oil and gas, telecommunications, and digital services sec- tors, are expected to challenge assessments under the new framework. The NTAA expands compliance obligations and strengthens audit powers, while the NRSA centralises revenue authority in ways that may be contested by multinationals wary of double taxa- tion. for include the following. Constitutional challenges There is likely to be a surge in high-value disputes over tax assessments, transfer pricing, and the treatment of cross-border transactions. The courts will be asked not only to interpret the letter of the new statutes but also to reconcile them with Nigeria’s existing treaty obligations under bilateral and multilateral tax agree- ments. The tax ombudsman One of the most notable features of the reforms is the establishment of a tax ombudsman, designed to
address individual complaints before they escalate to the courts. Although the creation of this ombuds- man may reduce the volume of small and individual taxpayer suits, it also introduces a new avenue for judicial review. Litigants dissatisfied with the ombuds- man’s determinations are expected to challenge them on grounds of bias, excess of jurisdiction, or denial of a fair hearing. These challenges could give rise to a new line of administrative law litigation focused on the scope of the ombudsman’s powers. Overview Overall, the tax reforms have created fertile ground for litigation that will test the Nigerian courts’ abil- ity to balance statutory interpretation, constitutional principles, and the demands of a modern economy. For businesses, 2026 is expected to be a year of increased fiscal risk, one that will demand proactive legal strategies to navigate compliance and dispute resolution. Competition and Consumer Protection Litigation If tax and data disputes represent the fiscal and tech- nological frontiers of Nigerian litigation in 2026, com- petition and consumer protection cases capture the regulatory dimension. Over the past few years, the Federal Competition and Consumer Protection Com- mission (FCCPC) has established itself as one of Nige- ria’s most active and assertive regulators. The FCCPC has increasingly tested the limits of its statutory authority in both enforcement and litigation. Among its recent initiatives in this regard is the Digital, Elec- tronic, Online, or Non-Traditional (DEON) Consumer Lending Regulation of 2025, which imposes new obli- gations on digital lenders and credit providers relat- ing to licensing, disclosure, interest calculation, and debt recovery practices. The Regulation is expected to generate a fresh wave of litigation as the Commis- sion moves to enforce compliance and as lenders and borrowers test its provisions in court. A watershed moment came in 2025 when the Federal High Court upheld the FCCPC’s regulatory authority over competition and consumer protection in the tel- ecommunications sector. The ruling not only validated the Commission’s expansive approach but also set the stage for further litigation in other sectors, par- ticularly where existing regulators, such as the Cen-
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