Supreme Court Sets July 27 for Verdict in FIRS, Bayelsa N5.5bn Tax Dispute

The Supreme Court has fixed July 27, 2026, to deliver judgment in an appeal filed by the Federal Inland Revenue Service (FIRS) against earlier rulings that ordered the payment of N5.5 billion to the Bayelsa State Revenue Service.

The appeal challenges the decisions of both the Federal High Court and the Court of Appeal, which held that the money was wrongly collected and withheld from Bayelsa State.

A five-member panel of the apex court, led by Justice Ibrahim Saulawa, reserved judgment on Wednesday after lawyers representing all parties adopted their final written addresses.

Representing the federal government, the Attorney-General of the Federation (AGF), Lateef Fagbemi (SAN), urged the court to overturn the lower courts’ rulings and rule in favour of the FIRS. He argued that Bayelsa State failed to follow due process as stipulated in the Personal Income Tax Act, which requires such disputes to first be handled by the Tax Appeal Tribunal before approaching the courts.

Fagbemi also faulted the reliance of the lower courts on documents presented by a third party who was neither joined in the case nor called as a witness, describing it as a miscarriage of justice. He further insisted that the disputed funds should remain with the federal government and asked the court to order Bayelsa State to refund N3.6 billion.

In response, counsel to the Bayelsa State Government maintained that the central issue is the authority to collect personal income tax. He referenced an audit conducted by the FIRS, which he said confirmed that the N5.5 billion rightfully belongs to the state.

According to him, the total sum involved in the dispute is N8.8 billion, noting that both the trial court and the Court of Appeal had already affirmed Bayelsa’s entitlement to part of the funds. He argued that since the money is currently in federal custody, the appropriate amount should be deducted and the balance remitted to the state.

He also contended that the state cannot be required to pay interest on funds it never possessed, urging the Supreme Court to dismiss the appeal and uphold the earlier judgments.

Justice Saulawa subsequently adjourned the matter, marked SC/CV/472/2025, for judgment on July 27, 2026.