Matters/Constitutional
National Employers Consultative Association & Anor v. Attorney-General of the Federation
A challenge to levies imposed on employers without an enabling statute, decided on the plainest of constitutional grounds: no tax without law.
Forum
Federal High Court
Year
2016
Discipline
Constitutional
Outcome
Declaratory relief granted
The background
What happened
A federal agency began demanding contributions from employers under an administrative circular.
No statute authorised the levy, and no appropriation covered the fund into which it was to be paid.
Employers faced enforcement action for non-payment while the legality remained untested.
The question for the court
Whether an executive agency may impose a compulsory financial burden on private employers without an enabling Act of the National Assembly.
Counsel
Public law and constitutional team
Result
- The court declared the levy unlawful and unenforceable.
- Further enforcement against members was restrained.
- The agency withdrew the circular.
A comparable matter?
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+234 816 899 4065How it was argued
The case we put
Three lines of argument, run together rather than in the alternative.
No tax without statute
The imposition bore every characteristic of a tax and could only be created by legislation, not by circular.
Standing on behalf of an industry
We framed the action so that an employers' association could sue on behalf of members without each member being exposed individually.
Declaration over damages
The relief sought was declaratory and prospective, which kept the court's focus on legality rather than on quantifying past payments.
Why it matters
A durable result for an entire sector obtained by one association, at a fraction of the cost of individual challenges.
Federal High Court · 2016
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