Tax disputes: See the companies, states fighting NRS in court in 2026

Central to Nigeria’s tax ecosystem is the Federal Inland Revenue Service (now the Nigeria Revenue Service), the nation’s apex tax regulator.

The agency helped the nation generate N7.44 trillion in tax revenue in the first quarter of 2026, positioning it at the forefront of Nigeria’s revenue generation drive under the administration of President Bola Tinubu.

However, the tax agency is also intertwined in disputes over tax obligations involving individuals, companies, and even sub-national governments.

This often leads to tax default-related civil and criminal matters involving disputing parties and the agency.

Below are states and companies that currently have the FIRS as a defendant, respondent, or party in court matters:

FIRS vs Bayelsa over N5.5bn tax dispute

The Supreme Court has reportedly fixed July 27, 2026, for judgment in an appeal filed by the Federal Inland Revenue Service (FIRS) against decisions of the Court of Appeal and the Federal High Court, which ordered it to pay N5.5 billion to the Bayelsa State Revenue Service as funds allegedly wrongly collected and withheld.

The Attorney-General of the Federation (AGF), Lateef Fagbemi, SAN, who leads the federal government’s legal team, is urging the Supreme Court to quash the judgment.

AEDC vs FIRS in N5.3bn alleged VAT liabilities dispute 

There is reportedly a pending dispute involving alleged Value Added Tax (VAT) and Withholding Tax (WHT) liabilities worth N5,314,665,952 between Abuja Electricity Distribution Plc (AEDC) and the FIRS.

Nairametrics recalls that the Federal High Court in Abuja, on November 24, 2025, reversed the judgment of the Tax Appeal Tribunal, which had directed AEDC to pay the FIRS N5,314,665,952 in VAT and WHT liabilities dating back to 2013.

Justice Umar Mohammed cited “bias” on the part of a member of the tribunal and a lack of fair hearing while reversing the verdict and ordering a retrial by the tribunal.

The tribunal dispute is reportedly still pending.

Bolt vs FIRS over VAT agent ruling 

There is a pending appeal filed by ride-hailing and food delivery company, Bolt Operations, at the Court of Appeal, Lagos Division, against a Federal High Court judgment that upheld its appointment by the Federal Inland Revenue Service as a Value Added Tax collection agent.

On June 24, 2025, Justice Akintayo Aluko affirmed the powers of the FIRS to appoint Bolt as a VAT agent under Section 10(3) of the VAT Act.

Bolt had challenged the FIRS’s powers to impose VAT on services rendered by independent drivers and food vendors operating on its platform.

CSO challenges appointment of NRS Executive Directors 

A civil society organisation, Incorporated Trustees of Patriotic Youth Organisations of Nigeria, has sued the Nigeria Revenue Service (NRS), alleging illegality in the appointment of its Executive Directors.

The CSO, in suit number CV/462/26, alleges breaches of due process and statutory provisions.

Counsel to the plaintiff, Peter Abang, told Nairametrics that no hearing date had been fixed as of the time of filing this report.

Akwa Ibom State vs FIRS and others in N10.7bn tax liabilities dispute 

There is pending litigation filed by the Attorney General of Akwa Ibom State before the Federal High Court, Abuja, against the FIRS, the Accountant General of the Federation, the Central Bank of Nigeria, and others.

In the suit marked FHC/ABJ/CS/600/2018, the state is asking the court to determine whether the FIRS has the power to direct and authorise the Accountant General of the Federation to deduct taxes or liabilities allegedly owed to the FIRS from the statutory allocations payable to the state from the Federation Account.

The state is also urging the court to declare that it is entitled to set off part of the N45 billion allegedly owed to it by the Federal Government — approved in 2015 as reimbursement for funds expended on some federal roads in the state — against the alleged N10.7 billion tax liabilities claimed by the FIRS.