ATOPCON Urged to Leverage Nigerian Tax Act Incentives to Strengthen Compliance

Consultants Told to Maximise Tax Incentives Under Nigeria’s New Tax Framework

Town planning consultants under the Association of Town Planning Consultants of Nigeria (ATOPCON) have been advised to align their operations with the provisions of the Nigerian Tax Act 2025 by leveraging available incentives while strengthening compliance practices. The call was made during the 2026 Annual General Meeting of ATOPCON’s Lagos branch, highlighting the growing importance of tax efficiency in Nigeria’s built environment sector.

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New Tax Framework Reshaping Professional Practice

Experts at the event emphasised that Nigeria’s evolving tax regime introduces both regulatory obligations and strategic opportunities for consultancy firms. The Nigerian Tax Act 2025 establishes a more structured framework that directly impacts service-based sectors, including urban planning and real estate consultancy.

A presentation delivered by tax professional Olufunlola Adediran outlined key tax components relevant to the sector, including Value Added Tax (VAT) on services, withholding tax on professional fees, Companies Income Tax (CIT), Personal Income Tax, and stamp duties on land-related transactions.

These provisions expand the scope of taxable activities to cover core consultancy services such as layout design, environmental impact assessments, zoning, subdivision, and urban renewal projects.

Incentives and Reliefs for Smaller Firms

The new tax framework also introduces targeted incentives designed to support smaller firms. Companies with annual turnover below ₦100m may qualify for tax exemptions under specific provisions of the Act, reducing their fiscal burden and improving operational sustainability.

Additional reliefs include capital allowances, stamp duty exemptions on certain transactions, and expanded VAT input recovery mechanisms. These incentives provide opportunities for firms to optimise tax liabilities while maintaining compliance with statutory requirements.

Compliance and Record-Keeping Requirements

Speakers stressed that compliance remains central to benefiting from these incentives. The Act introduces stricter enforcement measures, including penalties for late filings and non-compliance, increasing the need for accurate record-keeping and transparent financial reporting.

Professionals were advised to separate personal and business finances, a practice that improves financial clarity and reduces exposure to tax-related risks. According to experts, poor financial structuring remains a key challenge for many consultancy firms operating in Nigeria.

Strategic Tax Planning as a Competitive Tool

Beyond compliance, the new tax regime elevates the role of strategic tax planning in business operations. Experts noted that proactive tax planning can significantly reduce effective tax rates while ensuring adherence to regulatory requirements.

This shift positions tax management as a core component of business strategy rather than a routine administrative obligation. Firms that adapt early to the new framework are likely to gain a competitive advantage in terms of cost efficiency and regulatory positioning.

Industry Response and Professional Adaptation

Leadership within ATOPCON emphasised the need for continuous professional development to navigate the changing policy environment. The Lagos branch chairman, Bello Akinwale, encouraged members to engage in ongoing training to understand the implications of tax reforms and avoid compliance risks.

Former ATOPCON President Waheed Kadiri also highlighted the importance of evolving business models, urging consultancy firms to adopt sustainable practices, improve pricing structures, and leverage technology to enhance service delivery.

Implications for the Real Estate and Built Environment Sector

The Nigerian Tax Act 2025 is expected to have broader implications for the real estate value chain, particularly in areas involving land transactions, development approvals, and consultancy services.

For investors and developers, improved tax clarity can enhance transparency and reduce regulatory uncertainty. For professionals, compliance and strategic planning will increasingly determine long-term viability in a more regulated operating environment.

The call for ATOPCON members to leverage tax incentives while strengthening compliance reflects a wider shift toward structured regulation within Nigeria’s real estate and planning sectors. The Nigerian Tax Act 2025 introduces both challenges and opportunities, making adaptability essential.

Firms that integrate compliance, strategic tax planning, and operational efficiency into their business models are better positioned to remain competitive and sustainable in an evolving regulatory landscape.

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