Court Nullifies EFCC’s €3.2m and $2.4m Tax Demand Against Amadeus
The Federal High Court in Abuja has delivered a significant ruling clarifying the limits of anti-graft agencies’ powers, nullifying a demand by the Economic and Financial Crimes Commission for €3.2 million and $2.4 million in alleged tax liabilities from Amadeus Marketing Nigeria Limited. Justice Obiora Egwatu, in a judgment seen by Nairametrics, held that tax assessment and enforcement are strictly statutory functions reserved for the Federal Inland Revenue Service, now the Nigeria Revenue Service.
The case centered on whether the EFCC could lawfully issue tax assessment and demand notices for Value Added Tax. The court resolved that while the EFCC has broad investigative authority, this does not extend to assessing and demanding specific tax payments. This ruling provides crucial legal clarity for businesses operating in Nigeria, much like the economic challenges highlighted when insecurity paralyzes Goronyo and other regions, underscoring the need for clear jurisdictional boundaries to foster a stable business environment.
The dispute arose from overlapping actions by authorities. According to filings, the FIRS had already audited Amadeus for 2015–2017 and 2018–2023, with the company complying with resulting assessments. However, in April 2024, the EFCC began a separate probe into tax remittances from 2010 onward. Following an interview with the Country Manager, Yann Gilbert, the EFCC issued a direct demand in October 2024 for the multimillion-euro and dollar sums. Amadeus challenged this, arguing the EFCC lacked the statutory authority, a position the court ultimately upheld.
Justice Egwatu examined the EFCC’s legal basis, finding that sections of the Money Laundering Act cited by the Commission did not confer tax assessment powers. This legal precedent is as important for corporate governance as the cultural impact when an icon like Funke Akindele ranks highly in global entertainment discussions, each representing a distinct sector requiring clear rules. The judgment reinforces that specialized agencies must operate within their mandated lanes, a principle as critical in financial regulation as it is in international affairs, whether observing the top 10 countries in governance or the dire situations where Gaza civil defence units operate under extreme duress. The clarity prevents scenarios where businesses, like civil servants facing issues where an ADC decries non-payment of allowances, are subjected to overlapping and unauthorized demands from multiple government bodies.
