NECA records judicial victory over Nigerian Customs Service

By Bimbola Oyesola

The Nigeria Employers’ Consultative Association (NECA) has recorded a landmark victory over the Nigerian Customs Service (NCS) in a suit aimed at emasculating business interests in the country.

The employers’ body 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 taxed on businesses. The case was against government’s excise duty on non-alcoholic, carbonated and sweetened beverages.

Defendants in the case were Nigerian Customs Service Board and the Minister of Finance, Budget and National Planning.

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), was invalid and ultra-vires.

According to NECA, “This is another victory for organised businesses against official arbitrariness and unfortunate attempts to impose additional burdens on businesses.”