“Jurisdiction Battle” — Supreme Court Reserves Judgment In FIRS–Bayelsa Revenue Dispute Appeal Over ₦5.5bn Tax Refund

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

A five-member panel of the apex court, led by Justice Ibrahim Saulawa, reserved judgment on Wednesday after counsel to the parties adopted their final written briefs.

Arguing the appeal on behalf of the federal government, the Attorney-General of the Federation (AGF), Lateef Fagbemi, urged the court to set aside the judgments of the lower courts and allow the appeal.

He contended that Bayelsa State failed to comply with the statutory provisions of the Personal Income Tax Act, which require such disputes to be first determined by the Tax Appeal Tribunal before approaching the courts.

Fagbemi further argued that the lower courts relied on documentary evidence tendered by a third party who was neither joined in the suit nor called as a witness, thereby occasioning a miscarriage of justice.

He also maintained that the funds in dispute should be retained by the federal government, urging the court to order Bayelsa State to refund N3.6 billion.

In response, counsel to the Bayelsa State Government argued that the crux of the matter is the authority to collect personal income tax.

He cited an audit conducted by the FIRS, which, according to him, confirmed that the sum of N5.5 billion rightfully belongs to the state.

He told the court that the total amount involved in the dispute is N8.8 billion, noting that both the trial court and the Court of Appeal had affirmed the state’s entitlement to part of the funds.

He added that since the money is currently in the custody of the federal government, it should deduct the acknowledged sum and remit the balance to the state.

The counsel also argued that the state cannot be made to pay interest on funds it never held, urging the apex court to dismiss the appeal and uphold the concurrent judgments of the lower courts.

Justice Saulawa consequently fixed 27 July for judgement on appeal which is marked SC/CV/472/2025.