The federal government has reaffirmed that all lawyers and law firms are legally required to remit the 7.5 percent Value Added Tax (VAT) to the Federal Inland Revenue Service (FIRS) under the new tax reform law, which is set to take effect on January 1, 2026.
![](https://thenigerialawyer.com/wp-content/uploads/2026/05/2026-Summer-IDRI-Masterclass.jpg")
According to the government, legal practitioners provide professional services that clearly fall within the taxable category of the new fiscal framework.
The government clarified that traders, military personnel, workers earning below N800,000 annually, and small businesses with a turnover of N100 million or less are exempt from VAT. Where VAT is wrongly charged to anyone in the exempt category, refunds can be processed within 30 days.
Chairman of the FIRS, Zack Adedeji, made this known on Wednesday while addressing participants at the 56th Annual Conference of the Nigerian Association of Law Teachers (NALT) at the University of Abuja. He was represented by Bright Igbinosa, Head of the Tax Policy Reform Analysis Unit, Fiscal and Tax Reform Division of the Service.
Adedeji explained that the tax reform aims not to overburden professionals but to promote fairness, transparency, and accountability within Nigeria’s revenue system. He said the reform is part of a broader strategy to expand the tax net, curb evasion, and enhance revenue for national development.
Responding to concerns about the inclusion of young lawyers in the VAT regime, Adedeji emphasized that professionals cannot be treated like traders.
“A professional like a lawyer can generate much higher profits than a typical trader. Lawyers are not exempt because they render professional services that are clearly defined in the law. Professionals should not resist compliance. They are elites and should not be seeking exemption,” he stated.
He further noted that the law empowers FIRS to appoint third parties to recover taxes from defaulters living outside Nigeria and urged all legal practitioners to register with the FIRS, file VAT returns, and remit collections promptly, warning that non-compliance would attract statutory penalties.
Meanwhile, Prof. Abiola Sanni, SAN, Dean of the Faculty of Law, University of Lagos, described the four new tax reform laws as a landmark development in Nigeria’s fiscal history. He called on state governments to align their tax policies with federal reforms to ensure fiscal stability and sustainable growth.
Prof. Sanni emphasized that states must actively broaden the tax base and ensure that revenues are transparently utilized to deliver tangible benefits to citizens, particularly in infrastructure, education, and healthcare. He also urged continuous stakeholder engagement and public enlightenment to ensure smooth implementation of the reforms.
“Order Your Copy Now” — Basil Momodu, Esq. Unveils Second Edition Of His Book, "Civil Procedure In Nigeria"
According to the learned author, Basil Momodu Esq. "Law review is a continuum. We will continue to track changes in the law to enrich future editions." Recommended Booksellers: Lagos: 08033855230, Abuja: 08035991379, and others.
_______________________________________________________________________
[A MUST HAVE] Evidence Act Demystified With Recent And Contemporary Cases And Materials
Available now for NGN 40,000 at ASC Publications, 10, Boyle Street, Onikan, Lagos. Beside High Court, TBS. Email publications@ayindesanni.com or WhatsApp +2347056667384. Purchase Link: https://paystack.com/buy/evidence-act-complete-annotation
______________________________________________________________________ “Bridging Theory And Courtroom Practice” — Hagler Sunny Okorie, Nathaniel Ngozi Ikeocha Unveil ‘Functional’ Tort Law Book For Nigerian Legal System
The book, titled The Law of Torts in Nigeria: A Functional Approach, authored by Professor Hagler Sunny Okorie Ph.D and Ikeocha, Nathaniel Ngozi Esq, offers law students, practitioners, and academics a comprehensive guide to understanding and applying tort law in Nigerian courts. Interested buyers can place orders via the following contact numbers: 08028636615, 08037667945, 08032253813, or +234 902 196 2209.
______________________________________________________________________
“Enhance Legal Practice With Authoritative Reports” — Alexander Payne Offers Comprehensive Law Reports, Spanning Over A Century Of Nigerian Jurisprudence
Interested buyers are encouraged to place their orders and enquiries via:
0704 444 4777, 0704 444 4999, 0818 199 9888
Website: www.alexandernigeria.com
As an added bonus, every purchase comes with a FREE ebook titled: “AI in Legalpedia and Law Pavilion: A Research Guide.”
Ohio Books Ltd praises the publication, stating:
"....this is the only Nigerian book I know of on the topic."
How to Order:
📞 Call, Text, or WhatsApp: 08034917063 | 07055285878
📧 Email: benadigwe1@gmail.com
🌎 Website: www.benadigwe.com
Ebook Version: Access it directly online at https://selar.com/prv626
