DISTRAINT WITHOUT LIMITS: A REVIEW OF THE NIGERIAN TAX ADMINISTRATION ACT, 2025

Abstract

The Nigerian Tax Administration Act, 2025 introduces expansive provisions empowering tax authorities to enforce distraint—the administrative seizure of a taxpayer’s assets—to recover unpaid taxes. While such powers are vital for efficient tax collection and reducing revenue leakages, their exercise without judicial oversight raises critical concerns about constitutionality, fairness, and proportionality. This paper examines the legal framework for distraint under the 2025 Act, highlighting the risks posed by unrestrained enforcement, including potential violations of property rights and due process guarantees under the 1999 Constitution. Drawing on comparative insights from jurisdictions such as the United Kingdom and South Africa, the paper argues that effective tax enforcement can co-exist with robust taxpayer protections. It recommends legislative reforms introducing judicial checks, procedural safeguards, and oversight mechanisms to balance state revenue interests with taxpayers’ fundamental rights. The study concludes that without these reforms, the 2025 Act risks enabling distraint without restraint—undermining public trust in Nigeria’s tax system. This article undertakes a doctrinal and comparative analysis of the distraint provisions, assessing implications and recommending safeguards.