The Supreme Court has reserved judgment until 27 July 2026 in a high-stakes tax dispute between the Federal Inland Revenue Service (FIRS) and the Bayelsa State Internal Revenue Service over N5.5 billion.
A five-member panel led by Justice Ibrahim Saulawa fixed the date on Wednesday after both sides adopted their final written addresses.
Representing the federal government, Attorney General of the Federation, Lateef Fagbemi (SAN), urged the apex court to overturn earlier rulings of the Federal High Court and the Court of Appeal, which had directed that the disputed funds be paid to Bayelsa.
Fagbemi argued that the state failed to follow the Personal Income Tax Act, which requires disputes to first be heard at the Tax Appeal Tribunal.
He also criticised the lower courts for relying on documents from a third party not joined in the suit, calling it a miscarriage of justice.
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Thereafter, he asked the court to order Bayelsa to refund N3.6 billion, insisting the funds should remain with the federal government.
Counsel for Bayelsa countered that the central issue is constitutional authority over personal income tax collection.
He maintained that an FIRS audit confirmed N5.5 billion belongs to the state, with the total sum in contention standing at N8.8 billion.
The Counsel stated that both the trial court and the Court of Appeal had already affirmed Bayelsa’s entitlement to part of the funds, and urged the Supreme Court to direct the release of the money held in federal custody.
After hearing submissions, the panel adjourned for judgment, leaving the outcome of the long-running dispute to be decided in July.