Arbitrability of tax disputes in Nigeria

摘要

Until recently, there had been no clear and definitive judicial pronouncement on arbitrability of tax disputes in Nigeria. The absence of statutory provisions in Nigeria's main arbitration legislation did not help matters. This article examines two recent Court of Appeal decisions dealing with arbitrability of tax disputes. The author is of the considered view that the approach adopted by the court of appeal in these cases is not in the overall interest of sustaining the arbitration culture that is gaining prominence in Nigeria. Taxation directly implicates the fund-raising by which modern collectivities operate. Thus, it would not be odd for national courts to seek a monopoly on litigation touching such a vital sovereign prerogative.