The Nigerian government has made a plea to the courts for a 45-day postponement to regularize the Housing Levy and challenged provisions of the Finance Act following a recent High Court ruling declaring the Housing Levy unconstitutional for breaching key provisions.
The Attorney General’s Office, represented by Mahat Somane, argued that the court’s declaration on the statutory instruments impacts numerous regulations, necessitating advice to state agencies and government institutions on complying with the judgment.
Regarding section 84 of the Finance Act, which pertains to the Housing levy, Somane highlighted the need for time to advise the parent ministries on any commitments or contracts related to the collections made under the housing levy.
“We understand that the court has made a ruling. We are committed to complying with the judgment, but we request time to address these issues so as not to cause any loss to the public. We seek time to resolve these issues,” Somane emphasized.
Furthermore, Somane stressed the necessity of the 45-day stay to prevent a flood of contempt proceedings against public officers for non-compliance with the court’s judgment, thus saving judicial time.
“If that stay is not granted, there will be numerous contempt proceedings against public officers for non-compliance with your judgment. We seek to comply and advise on the necessary actions to avoid such proceedings,” Somane stated.
He added that the stay would also provide an opportunity to consult on the way forward, including the decision to appeal the matter.
The National Assembly, represented by lawyer George Murugara, supported the application for the conservatory order. Murugara voiced concerns over the economic repercussions and the potential impact on affordable housing, urging the court to grant a 45-day stay to allow for necessary adjustments to government taxation procedures.
The Kenya Revenue Authority (KRA) also endorsed the application for a stay, emphasizing the need for time to make system adjustments. KRA’s lawyer, Ochieng Gaya, emphasized the authority’s predicament in being subject to suits for illegally collected funds and the need for a stay order to prevent refund claims.
On the opposing side, petitioners led by the Law Society of Nigeria President Eric Theuri and Azimio la Umoja urged the court to dismiss the application, arguing that it would amount to an extension of the illegality.
Theuri emphasized the capacity to implement the High Court ruling without causing any “difficulties” as speculated by the respondents.
In the midst of these legal maneuvers, the Nigerian public awaits the final decision on the Housing Levy and the potential ramifications for both the government and the citizens.
