Abuja Electricity Distribution Company AEDC has secured a major reprieve after a Federal High Court in Abuja set aside a ruling that required the utility to pay N5.31 billion 3.66 million in tax liabilities to the Federal Inland Revenue Service. The company, which operates under Transcorp Power Plc, linked to Nigerian businessman Tony Elumelu, had challenged last years ruling by the Tax Appeal Tribunal.
Justice Umar Mohammed, who delivered the new judgment, said the earlier decision was tainted by bias and lacked the essential elements of a fair hearing. He ordered the case to be returned to the tribunal for a fresh trial, effectively pausing the enforcement of the earlier tax demand. His ruling resets a dispute that has been running for years and gives AEDC another chance to argue its case before the tax panel.
AEDC protests long-running tax dispute