Town planners have been advised to brace for the implementation of the Nigerian Tax Act.

The professionals under the auspices of the Association of Town Planning Consultants in Nigeria (ATOPCON), Lagos Branch, also enjoined to keep detailed records of transactions and are prepar to pay appropriate taxes to the government.

Speaking during the association’s 2026 Annual General Meeting in Lagos, Avtax Administrator, Mrs Olufunlola Olaitan Adediran, advised town planners to familiarise themselves with the provisions of the new tax law, the obligations, and the incentives.

In her presentation on the theme: “The Nigeria Tax Act, 2025: The impact on Town Planning Consultancy Services”, she pointed out that what constituted a taxable supply for town planners includes the preparation of layout plans, environmental impact assessment, urban renewal, subdivision, zoning and regularisation, training and seminars.

“We are advising town planners to familiarise themselves with the provisions of the new tax law, the obligations, and the incentives.

“In addition to the incentives, there are also expectations of individuals and firms,” she said.

According to Adediran, town planning firms incorporated as limited liability companies are subject to Companies Income Tax (CIT) on their profits, with rates varying, depending on the company’s size.

She added that a strategic insight for the practitioners is that most small-sized town planning practices in Nigeria that fall under the N100m turnover threshold make them fully exempt from CIT under Section 56 of the NTA 2025.

Adediran, who was the guest speaker said: “Town Planners frequently deal with land instruments, share transfer and government contracts, many of which carry stamp duty exemptions under Section 184. The government is the sleeping partner of any business or any person in this country. Whether we like it or not, some percentage of our income even as an individual or corporate organization, will belong to the government even though it is believed that the government is not involved in our business. The government uses the funds to provide amenities for the nation. All nations use taxes to provide infrastructure and Nigeria is not an exception.”

She warned town planning consultants against lumping personal income and organisation, stressing that when the two are well identified and defined, the professionals may not need to pay taxes on it.

She said, town planners must manage a layered set of tax compliance obligations throughout the year, adding that missing deadlines attract automatic penalties under the NTA.

For her, proactive tax planning under the NTA can significantly reduce a town planning firm’s effective tax rate while remaining fully compliant with the law.

She said: “The reform broadly protects non-residents and diaspora Nigerians whose income is entirely earned abroad while introducing clear obligations for those with Nigerian-sourced income or substantial ties to Nigeria. At the same time, significant incentives from small company exemptions and economic development tax incentives to expanded VAT input recovery create meaningful opportunities for town planners and other business owners who engage proactively with the new framework,” she said.

Chairman, ATOPCON, Lagos branch, Bello Lateef Akinwale, explained that the chapter decided to look at the issue of the new tax reform and the impact on town planning consultancy service, adding that it appears to be one of the main issues in the country that affects individuals and professionals.

He said for clarity on the issue, the tax expert has been able to expose the practitioners to the basics of the law, specific areas of their job that it will impact, and what they need to do to avoid running afoul of the law.

Lateef advised the members to embrace training and retraining to deepen their competence in the practice.

Past President of ATOPCON/Chairman of the occasion, Waheed Kadiri, said understanding the implications of changing system policies is essential to maintaining a healthy and competitive practice in the town planning profession.

According to him, the consulting firm without a business outlet is only providing income for now and is not sustainable.

“ The consulting firm should be able to survive in high and low tax contributions through anticipated moves. Our professional practise contributes to land use planning, development management, environmental sustainability, infrastructure coordination, and the creation of functional mobility,” he said.

He calls for the need to address issues of underpricing, weak collaboration, and the need for continuous professional improvement.

Kadiri urged them to embrace innovation, strengthen technical capacity, adopt emerging technologies, and build stronger collaboration among professionals.

“We must accept the creative advantage of our colleagues in specialised areas of collaboration. I call on all members to be committed to professionalism, integrity, innovation, and collective responsibility,” he said.

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