Town planning consultants under the Association of Town Planning Consultants of Nigeria (ATOPCON) have been urged to align with the provisions of the new Nigerian Tax Act, particularly by taking advantage of its incentives while maintaining accurate records to ensure full tax compliance.
Experts say the evolving tax framework introduces both obligations and opportunities that could significantly reshape professional practice across Nigeria’s real estate and built environment sectors.
Speaking at the 2026 Annual General Meeting of ATOPCON’s Lagos branch, professional accountant and tax administrator Olufunlola Adediran emphasised the need for practitioners to understand how the law applies to their operations. Her presentation, titled “The Nigeria Tax Act, 2025: The Impact on Town Planning Consultancy Services,” highlighted key tax components affecting the sector.
These include Value Added Tax (VAT) on services, withholding tax on professional fees, Companies Income Tax (CIT), Personal Income Tax, development levies, capital allowances, and stamp duties on land-related instruments.
Adediran explained that town planning services such as layout preparation, environmental impact assessments, urban renewal, subdivision, zoning, and regularisation fall within taxable supplies under the law. Training and consultancy services are also covered.
She noted that while incorporated firms are subject to CIT based on profit levels, smaller firms with annual turnover below ₦100 million may qualify for exemption under Section 56 of the Act. In addition, certain transactions handled by consultants—such as land instruments and government contracts—may benefit from stamp duty exemptions.
“The government is a silent stakeholder in every business,” she said, stressing that taxes remain essential for infrastructure development.
She further warned consultants against mixing personal and business income, noting that proper financial separation improves compliance and can reduce tax exposure. According to her, the new law introduces stricter enforcement, with penalties for late filings and non-compliance.
Tax Planning Now Critical for Consultancy Firms
Adediran highlighted that proactive tax planning under the new framework can significantly lower a firm’s effective tax rate while ensuring regulatory compliance.
She added that the reform also provides clarity for non-residents and diaspora Nigerians, particularly regarding income earned outside the country, while tightening rules for locally sourced income.
Incentives such as small company exemptions, economic development reliefs, and expanded VAT input recovery were identified as key opportunities for firms willing to adapt early.
ATOPCON Leadership Calls for Professional Adaptation
Chairman of ATOPCON Lagos branch, Bello Akinwale, said the session was organised to help members understand the direct implications of the tax reforms and avoid compliance risks. He encouraged continuous training to strengthen professional capacity.
Also speaking, former ATOPCON President Waheed Kadiri stressed the importance of adapting to changing policy environments. He noted that consultancy firms must evolve beyond short-term income generation to sustainable business models.
“The consulting firm without a business outlet is not sustainable,” he said, urging practitioners to build resilience against changing tax regimes.
Kadiri further called for improved pricing structures, stronger collaboration among professionals, and the adoption of emerging technologies to enhance service delivery.
Outlook
The Nigerian Tax Act is expected to redefine operational standards within the town planning and consultancy space. For practitioners, the key takeaway is clear: compliance, strategic planning, and innovation will determine long-term sustainability in an increasingly regulated environment.
