Former senator DINO MELAYE in court over alleged N509.6m tax fraud

Thursday, August 28, 2025 - A former senator who represented Kogi West Senatorial District, Dino Melaye, has been taken before a Federal Capital Territory (FCT) Magistrate Court over alleged evasion of more than N509.6 million in personal income tax liabilities.

According to court filings, Mr Melaye allegedly failed to pay his mandatory Personal Income Tax for 2023 and 2024, amounting to N234,896,000 and N274,712,000 respectively, as assessed by the Federal Capital Territory Internal Revenue Service (FCT-IRS). The total sums to N509,608,000.00.

In addition to the non-payment for 2023 and 2024, the FCT-IRS also accused him of underpaying his taxes in 2020, 2021, and 2022. Records show that while Melaye declared an annual income of N1,383,334 in 2020, N1,550,000 in 2021, and N6,541,666.67 in 2022, he only remitted N100,000.08 in 2020, N120,000 in 2021, and N1,000,000 in 2022. In 2019, when he was still in the Senate, he declared N1,258,334 as income but paid only N85,000.08 as tax.

A criminal summons dated 21 August 2025, has been issued against him, compelling his appearance before the Magistrate Court at Wuse Zone II, Abuja, on 5 September 2025.

The tax authority said it conducted an administrative assessment of Mr Melaye's tax liabilities for 2023 and 2024, but after he failed to respond within 30 days, it issued a notice of best judgment assessment on June 23, 2025.

The notice, pasted on his Maitama residence on 9 July 2025, after he allegedly evaded service, warned that his non-compliance with Section 41 of the Personal Income Tax Act 2011 constituted a breach of the law.

The FCT-IRS stated, "Despite reminders and ample time provided, your non-compliance with Section 41 of the Act constitutes a breach of your obligations. Consequently, the Federal Capital Territory Internal Revenue Service (FCT-IRS) has, in accordance with Section 54(3) of the Personal Income Tax Act, proceeded to raise a Best of Judgment Assessment in respect of your tax liabilities for the years under review.

"Accordingly, your tax liability has been assessed in the sum of N234,896,000.00 and N274,712,000.00 for the period of 2023 and 2024 respectively. Please note that the Service has also identified income under-declaration and underpayment for the 2020, 2021 and 2022 years of assessment. Notices of additional liability will be issued upon conclusion of our review."

Under the Personal Income Tax Act (PITA) 2011 (as amended), failure to file tax returns, under-declaration of income, or outright evasion attracts severe sanctions. Section 94 of the Act prescribes fines. In addition, the law empowers the tax authority to recover unpaid liabilities. Those are without prejudice to any criminal proceedings that could be launched against defaulters.

If the FCT-IRS succeeds in its case, Mr Melaye risks not only paying back the N509.6 million assessed for 2023 and 2024 but also additional liabilities for 2020-2022, heavy penalties, and interest charges, which could push the total far higher.

Mr Melaye, a former lawmaker and ex-chairman of the Senate Committee on FCT, also contested the November 2023 Kogi State governorship election under the platform of the Peoples Democratic Party (PDP).