Tax Laws: Business Owners Warn On Continued Double Taxation, Say It Undermines New Laws 

ABUJA  – Business owners across Abuja’s hospitality, food, and service sectors have raised fresh concerns that the objectives of Nigeria’s new tax laws, which took effect in January, risk being undermined by what they describe as persistent double taxation by the Abuja Municipal Area Council (AMAC). 

The operators say that despite fully complying with payments and certifications issued by the Federal Capital Territory Authority (FCTA), they continue to receive demand notices, sealing threats, and court summonses from AMAC for the same services—actions they argue contradict both subsisting court judgments and the spirit of the newly reformed tax framework. 

The new tax laws, which emphasise harmonisation of revenue collection, clarity of taxing powers, and protection of businesses from overlapping levies, were introduced to improve Nigeria’s ease of doing business and restore investor confidence. 

However, affected operators argue that AMAC’s continued enforcement actions reflect the very inefficiencies the reforms sought to eliminate. 

At a press briefing in Abuja, the business owners cited the March 13, 2023 judgment in Bureau of Public Enterprises (BPE) v. AMAC (Suit No. FCT/HC/CV/546/2022), where the FCT High Court declared AMAC’s 2020 Environmental Sanitation and Premises Inspection Bye-Law illegal for lacking mandatory ministerial approval under Section 43 of the Public Health Act. 

The court held that AMAC had no authority to legislate or enforce public health regulations, describing the move as a usurpation of powers reserved for federal authorities. 

That position was reinforced on February 14, 2025, in Devyani International Nigeria Ltd. (KFC) v. AMAC (Suit No. CV/1642/2024), where the court ruled that food safety regulation, environmental health services, and medical fitness certification fall squarely within the FCTA’s jurisdiction. The judgment ordered AMAC to refund N1.222 million wrongfully collected and issued a perpetual injunction restraining further enforcement. 

Despite these rulings, business owners say enforcement practices on the ground have not changed. 

Rebecca Aminu, a hospitality operator, said the continued demands contradict the federal government’s tax reform agenda. 

“The new tax laws were supposed to end multiple taxation and harassment. But after paying FCTA-approved fees, AMAC still comes with fresh demands for the same services. This uncertainty is hurting small businesses,” she said. 

Another operator, Folorunsho Emmanuel, warned that the situation could discourage formalisation. 

“Once you pay FCTA, AMAC follows with another bill. When you resist, you’re taken to court. This is unsustainable and runs against the intent of the new tax regime,” he noted. 

Speaking to journalists, Alex Ogenna Ibe, FCTA’s legal representative, reiterated that only FCTA-approved remittances are lawful, warning that continued defiance of court orders amounts to contempt. 

He disclosed that further legal steps are being considered to compel compliance and safeguard business operations in the capital. 

Similarly, Director of Public Health at the FCT Health and Human Services Secretariat, Dr. Dan Gadzama, cautioned business owners against making payments to AMAC on matters already settled by law, stressing that such payments would not be recognised. 

Analysts say the dispute highlights a critical test for Nigeria’s new tax laws, noting that unless sub-national authorities align their practices with the reforms, the promise of a simpler, fairer tax system for businesses may remain elusive.