How to Connect and Engage with Lawyers on the Legalnaija Directory

by Legalnaija | Dec 19, 2025 | Blawg

The Legalnaija Directory is more than just a list of names—it’s a bridge to trusted legal professionals across Nigeria. Whether you’re seeking advice on property transactions, corporate matters, or family issues, knowing how to connect and engage with lawyers effectively can make all the difference. Here’s a practical guide to help you navigate the platform and build meaningful professional relationships.

1. Search Smart

The directory allows you to filter lawyers by practice area. Instead of scrolling endlessly, use these filters to zero in on professionals who specialize in your specific legal needs. This saves time and ensures you’re reaching the right person.

2. Review Profiles Thoroughly

Each lawyer’s profile contains valuable information about their expertise, experience, and contact details. Take the time to read carefully before reaching out. Tailoring your message to their specialization shows respect and increases the likelihood of a positive response.

3. Craft a Clear Introduction

When contacting a lawyer, introduce yourself properly. Briefly explain your legal issue and mention why you chose them. A concise, respectful message sets the tone for a productive conversation.

4. Engage Professionally

Lawyers appreciate clarity. Avoid vague requests like “I need help.” Instead, outline your situation, your goals, and any deadlines. Professional communication builds trust and demonstrates seriousness.

5. Schedule Consultations

Most lawyers prefer structured conversations. Politely ask about consultation availability and fees. Respecting their time shows you value their expertise and helps establish a professional relationship from the start.

6. Prepare Beforehand

Before your consultation, gather all relevant documents, questions, and timelines. Being prepared makes the session more productive and signals that you are committed to resolving your issue.

7. Follow Up Respectfully

If you don’t get a reply immediately, wait a few days before sending a polite reminder. Persistence is good, but professionalism is better. Avoid spamming or pressuring—lawyers are more likely to respond positively to courteous follow-ups.

8. Build Long-Term Relationships

Don’t only reach out when you’re in trouble. Engage lawyers for insights, updates, or preventive advice. Building rapport today can save you stress tomorrow and ensures you have trusted professionals in your corner.

The Legalnaija Directory is designed to make connecting with lawyers simple and effective. By searching smart, communicating clearly, and engaging professionally, you can find the right lawyer for your journey and build lasting relationships that support your legal needs.

@Legalnaija

Free Access to Lawyers Directory for All Nigerian Lawyers and Law Firms

by Legalnaija | Dec 18, 2025 | Blawg

Legalnaija has officially announced that its flagship Lawyers Directory will now be free for all Nigerian lawyers and law firms. This landmark decision follows more than four years of building and sustaining the platform, which has grown to become one of the most visible online resources for connecting lawyers with clients in Nigeria.

A Platform Built for Accessibility

Launched over four years ago, the Legalnaija Lawyers Directory was designed to make lawyers more accessible, visible, and connected to clients. Today, the directory ranks at the top of Google search results for lawyers in Nigeria — a clear testament to its impact and reach.

By removing subscription barriers, Legalnaija is reaffirming its commitment to promoting access to justice and strengthening the Rule of Law through technology.

Effective immediately, lawyers and law firms can access the basic subscription to the Lawyers Directory completely free of charge.

• Verified lawyers can log in to activate their free yearly or monthly subscription via app.legalnaija.com/signin.
• New lawyers can begin the sign-up process at app.legalnaija.com/signup.
• Clients seeking legal services can connect with lawyers directly through app.legalnaija.com.

Legalnaija invites lawyers across Nigeria to take advantage of this opportunity, get listed, and be part of a growing digital community that is reshaping access to justice. With over four years of resilience, growth, and innovation, the Lawyers Directory is set to continue empowering lawyers and clients alike for decades to come.

This Christmas, Gift Knowledge 📚⚖️

by Legalnaija | Dec 8, 2025 | Blawg

This Christmas, Gift Knowledge 📚⚖️

Looking for the perfect gift for your favorite lawyer, mentor, colleague, or even yourself?

🎁 Introducing the Legal Book Hamper — a curated basket of essential Nigerian law books covering everything from Commercial Law to Maritime Law, Tax, Procurement, and more.

Because nothing says “I value your mind” like a bundle of wisdom.

✅ Perfect for:

– Young and senior lawyers

– Law students

– Legal mentors

– Corporate counsel

Let’s make this season about growth, learning, and celebrating the brilliance of the legal profession.

Hampers available in 2 bundles:

✨ Dispute Resolution Expert Hamper https://legalnaija.com/product/litigation-and-adr-expert-bundle/

✨ Corporate Law Expert Hamper https://legalnaija.com/product/business-law-bundle/

📍 Order now from the Legalnaija Bookstore

📞 Call: 09029755663

🛒 Shop: Legalnaija.com/store

NICArb Annual Conference & Investiture: Charting a New Path for Arbitration in Africa

by Legalnaija | Dec 1, 2025 | Blawg

The Nigerian Institute of Chartered Arbitrators (NICArb) recently hosted its Annual Conference and Investiture, a landmark gathering that brought together leading voices in law, business, and dispute resolution. The two-day event underscored Africa’s growing role in shaping global arbitration and Alternative Dispute Resolution (ADR) practices.

Opening Highlights

The conference commenced with remarks from Professor Fabian Ajogwu, SAN, President of NICArb, followed by a virtual address from Mr. Wang Chengjie, Vice President of CIETAC. Lady Debbie Obodokwu, FCArb, representing the Annual Planning Committee, emphasized arbitration’s critical role in driving economic growth, sustaining societal stability, and strengthening Nigeria’s justice system.

Mazi Afam Osigwe, SAN, President of the Nigerian Bar Association, urged practitioners to champion ADR as a way to ease court congestion and retain arbitration work within Nigeria. The Attorney-General of the Federation, Prince Lateef Fagbemi, SAN, reinforced this message, describing ADR as an instrument of peace and justice. He revealed ongoing reforms to enhance enforcement, judicial support, and practice directions that will minimize adjournments and reinforce party autonomy.

Plenary Sessions – Day One

– Strengthening Institutional Arbitration in Africa: Panelists explored how African arbitral institutions can evolve from ad hoc practices to structured systems aligned with international standards, drawing lessons from OHADA, UNCITRAL, and the New York Convention.

– Energy, Oil & Gas Disputes: Discussions focused on leveraging arbitration to minimize project disruptions, ensure regulatory compliance, and build investor confidence in Nigeria’s energy sector.

– Construction & Infrastructure Arbitration: Experts examined recurring challenges such as delayed payments, financing gaps, and political risks, while stressing the need for reforms to enhance enforcement and cost efficiency.

– Banking, Finance & Fintech Disputes: With the rise of cross-border lending and digital finance, panelists highlighted the importance of robust institutions and modern legislative frameworks to position Africa as a hub for financial arbitration.

Plenary Sessions – Day Two

– Young Arbitrators and ADR Awareness: The “Early Riser Session” spotlighted the contributions of emerging practitioners, who are driving innovation and digital transformation in ADR. Panelists emphasized mentorship and inclusive appointment practices to empower young professionals.

– Institutional Mediation: Mrs. Achere Cole of the Lagos Multi-Door Courthouse showcased Nigeria’s mediation model, noting its replication across 21 states and its efficiency compared to litigation. Mr. Denis of AALCO Hong Kong added insights on Hong Kong’s mediation practices.

– Arbitration and the Courts: Judges and practitioners discussed the judiciary’s role in supporting arbitration, stressing the need for consistent precedents, judicial training, and legislative reforms.

– Ethics in Arbitration and ADR: The final session tackled ethical standards, digital transformation, and cybersecurity risks. Mrs. Caroline Etuk emphasized fairness and integrity as the bedrock of ADR, while Rémi Gerbay and Jonathan Barnes highlighted global ethics frameworks and the importance of secure digital solutions.

Key Takeaways

The NICArb Annual Conference reinforced several themes:

– The need for strong institutions and judicial support.

– Retaining disputes within Africa to strengthen local arbitration hubs.

– Empowering young professionals as catalysts for change.

– Mainstreaming mediation alongside arbitration.

– Upholding ethical standards and embracing technology responsibly.

Conclusion

With its rich discussions and forward-looking reforms, the NICArb Annual Conference affirmed that Africa is poised to become a thriving hub for domestic and international dispute resolution. By strengthening institutions, embracing innovation, and adhering to global best practices, Nigeria and the continent at large can chart a new path for arbitration and ADR.

Governance in the Digital Age: ICSAN Lagos Summit Redefines Leadership

by Legalnaija | Nov 19, 2025 | Blawg

On October 30, 2025, the Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN), Lagos State Chapter, hosted its Annual Summit at The Jewel Aeida, Lekki Phase 1. With the theme “Governance Redefined in a Business Environment: A Continuum or New Paradigm,” the event brought together thought leaders across governance, cybersecurity, finance, law, and technology to explore the evolving landscape of corporate leadership in a digitally disrupted world.

The Summit aimed to:

• Elevate cybersecurity as a board-level governance priority.
• Promote proactive digital resilience and ethical accountability.
• Address emerging risks from AI and advanced technologies.
• Align Nigerian governance practices with global standards.
• Translate ethics into measurable governance frameworks.

Ms. Efosa Ewere, FCIS, Chairman of ICSAN Lagos Chapter, welcomed participants with a call to embrace governance as a strategic value driver. Mrs. Uto Ukpanah, FCIS, ICSAN President, emphasized the Summit’s role in advancing transparency and professional excellence. Representing the Summit Chairman, Dr. Dayo Mobereola, Mrs. Mineks highlighted the urgency of adaptive governance in the face of digital transformation and shifting stakeholder expectations.

Keynote: Governance as Value Creation

Prof. Yinka Omorogbe delivered a powerful keynote, tracing governance’s evolution from compliance to strategic leadership. He stressed that modern governance is shaped by ethics, culture, and stakeholder trust—not just rules. He called for stronger enforcement, ethical leadership, and national renewal through transparent governance.

Plenary Session I: Bridging Compliance and Strategy

Moderated by Kunle Olusanya, the panel explored governance as a tool for sustainable value and competitiveness. Key takeaways included:

• The strategic role of Company Secretaries.
• Governance investment during economic downturns.
• Sector-specific frameworks like Nigeria’s electricity code.
• ESG, cybersecurity, and AI oversight as rising priorities.

Dr. Abubaka Rasaq of FRCN shared practical sustainability initiatives, including solar adoption, shared mobility, and employee wellbeing programs.

Plenary Session II: Adaptive Governance in the Age of Disruption

Led by Biverly Agbakoba-Onyejianya, this session tackled the intersection of AI, cybersecurity, and corporate structures. Highlights included:

• Cybersecurity as a governance imperative.
• Board-level crisis readiness and digital trust capital.
• Ethical deployment of AI and data privacy safeguards.
• Inclusion of younger professionals on boards based on competence.
• Positioning Data Protection Officers at management level.

Speakers urged Nigerian institutions to build cyber-skill capacity and prepare for evolving AI regulations.

Engagement and Reflections

Participants actively engaged panelists with questions on sustainability, SME cybersecurity awareness, and board inclusion. The Summit concluded with a reaffirmation of governance as both legacy and innovation—anchored in ethics, transparency, and resilience.

The ICSAN Lagos Summit was more than a conference—it was a clarion call for governance professionals to lead with integrity, embrace innovation, and build resilient institutions for Nigeria’s future. As delegates departed, they carried with them renewed resolve to champion best practices and drive sustainable national development.

Dr. Tolu Aderemi Dedicates Business Law Award to Young Lawyers, Launches TAME

by Legalnaija | Nov 10, 2025 | Blawg

Lagos, Nigeria — November 10, 2025

Dr Tolu Aderemi accepted the Business Law Advocates Award at the Nigerian Legal Awards on 9 November 2025 and rededicated the honour to young lawyers, with particular emphasis on members of the Nigerian Bar Association Lagos Branch. “I accept this award on behalf of the rising generation of lawyers, especially those of the Lagos Branch, whose energy and ambition will define the future of our Bar,” he said.

Aderemi said entrepreneurship and the business realities of legal practice are not sufficiently taught in universities and at the Nigerian Law School. “Too many graduates leave our faculties with superb legal knowledge but little preparation for running or growing a modern legal practice,” he said. “This education gap helps explain why entrepreneurial skills are not widespread among lawyers today.”

To address that gap he announced the Tolu Aderemi Mentorship and Empowerment Programme TAME in partnership with Lawlexis. The programme is scheduled to begin in the first quarter of next year and will provide training in the business of law, mentorship and exposure to commercial practice.

The event opened with remarks by Kamal Shah, Senior Partner at Stephenson Harwood UK, who commended the depth of legal practice in Nigeria and across Africa. The keynote address was delivered by Pastor Godman Akinlabi, Global lead pastor of the Elevation Church, who challenged lawyers to lead by example, not aid and abet corruption, and to leave a lasting legacy.

Organiser Lere Fashola gave welcome remarks in which he commended the legal community for the work it is doing and congratulated all the awardees, including Dr Aderemi, for lifting the legal profession bar high. The announcement of TAME was met with approval from attendees who described it as a timely intervention to bridge the gap between academic training and the commercial demands of modern practice.

Celebrating Excellence: the ESQ 25 Nigerian Legal Awards

by Legalnaija | Nov 8, 2025 | Blawg

The Nigerian legal community is gathering in style and substance for the prestigious ESQ 25 Nigerian Legal Awards, a celebration of brilliance, impact, and innovation across the legal profession. From seasoned firms to rising stars, this year’s finalists reflect the dynamic evolution of law in Nigeria.

Some of the categories of awards include;

Immigration Team of the Year

CSR Team of the Year

Law Firm of the Year (Large Practice)

Law Firm of the Year (Mid Practice)

40 Under 40: Rising Legal Stars

The ESQ 25 Nigerian Legal Awards are more than accolades—they’re a mirror reflecting the strength, diversity, and promise of Nigeria’s legal landscape. Legalnaija is proud to spotlight these trailblazers and celebrate the stories behind the success.

Stay tuned for exclusive interviews, behind-the-scenes moments, and more coverage from the awards.

#Legalnaija #ESQ25Awards #NigerianLaw #LegalExcellence #40Under40 #CSRLeadership #ImmigrationLaw #LawFirmOfTheYear

IS NIGERIA’S NEW TAX REGIME THE SAVIOUR WE NEED? UNMASKING THE CULTURE OF BACKDOOR TAXATION | Okorote Ozioma Nwachukwu

by Legalnaija | Nov 5, 2025 | Blawg

Introduction

It is common knowledge amongst Nigerians that the nation’s legal system is often more beautiful on paper than in practice. In many respects, the Nigerians laws remains a figment of ideal imagination-sound in reality but weak in execution. The law governing taxation is one of such areas plagued by this reality. Perhaps this is because Nigeria’s tax laws are wholesome adoptions of frameworks developed in more advanced economies, without sufficient adaptation to local realities. Or perhaps the concept of taxation is complex to many Nigerians.

Whatever the reason, there’s no denying that taxation plays a critical role in national development and revenue generation. Yet, Nigeria continues to struggle with effective enforcement and compliance. In recent years, the country’s tax-to-GDP ratio has been alarmingly low hovering around 5-6% a figure far below the African average.[1] This persistent shortfall prompted repeated amendments to key tax legislations such as the Companies Income Tax Act, Personal Income Tax Act, Stamp Duties, and Capital Gains Tax Act under what was known as -the Decentralized tax system or the old tax regime.

Despite the several amendments, the tax to GDP ratio still very low. Recognizing the the urgent need for reform, President Bola Ahmed Tinubu’s administration, initiated a comprehensive framework. This culminated in the enactment of four new tax reform laws signed on the 26^th of June, 2025[2] namely:

1. Nigeria Tax Act (NTA)
2. Nigeria Tax Administration Act (NTAA)
3. Nigeria Revenue Service Act (NRSA)
4. Joint Revenue Board Act (JRBA)

While the Nigeria Tax Act serves as the substantive law defining what tax exist and how they are charged, the Nigeria Tax Administration Act governs how taxes are assessed, collected and enforced. The Nigeria Revenue Service Act establishes the new Nigerian Revenue Service (NRS) in charge of administering the provision of the Act, while the Joint Revenue Board Act strengthens coordination across all tiers of government through a more robust Joint Revenue Board (JRB).

Undoubtedly, the new tax regime deserves commendation for its clarity and structure- at least in theory. It attempts to resolve the long-standing problem of multiple taxation across federal, state and local levels. Yet one critical question remains:

Will this new regime truly improve Nigeria’s tax-to-GDP ratio, or merely beautify a system whose root problem is still the manner in which taxes are paid and collected?

This article explores the issues of backdoor tax payments in Nigeria. It examines the gap between how tax payments ought to be made and how they are actually made in practice, investigates the causes of these informal payment channels and proposes practical, context driven solutions to address this systemic challenge.

Definition of Terms

To properly understand the concept of backdoor taxation, it is necessary to define two core terms-tax and backdoor taxation as used in this context.

Tax

A tax is simply a compulsory contribution imposed by government on individuals and entities for the purpose of generating revenue to fund public expenditure. it is not a voluntary payment, donation or gift; it is a legal obligation backed by law.

Charles E. MeLure Jr. defines tax broadly as “a compulsory charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a government organization in order to collectively fund government spending, public expenditures, or as a way to regulate and reduce negative externalities”[3]

Backdoor taxation

The word backdoor connotes secrecy, illegitimacy, and circumvention. In the context of this article, Backdoor taxation refers to instances where taxpayers pay legitimate taxes but through unauthorized or unofficial channels. This could mean settling and paying directly into tax officer’s personal account, cash payments without receipts or remittances made outside government approved systems such as Remita, or official revenue service portals.

In simpler terms backdoor taxation occurs when tax is paid the wrong way. The taxpayer fulfils their obligation in theory, but the payment fails to reach government coffers. Consequently, the payment cannot be verified, recorded or properly accounted for turning compliance into waste.

The idea of tax as a means of Public funding for government- for the greater good-is a noble, even genius. But to many Nigerians, it feels more like a financial burden or yet another corruption scheme by the government. As a result, citizens have resorted to various backdoor tax payments and in some cases, total evasion.

A common misconception among Nigerians is that taxation is not prominent is this part of the world but some borrowed culture from the Europeans-A myth based on lack of information and knowledge. In truth, taxation has been integral to nation building, during pre-colonial era traditional rulers acted as tax administrators, levying contributions on farm produce and trade goods[4]

Today taxation remains a statutory duty with the force of law, forming a key part of Nigeria’s revenue base. However, the misconception persist-not entirely without reason. It is still possible for a Nigerian to live their entire life without knowingly paying tax, or to have paid certain forms of tax (such as Stamp duties, PAYE) and still be ignorant about it.

Understanding what taxation truly means and how it has evolved from a legitimate system of public contribution into a practice often manipulated through unofficial routes helps shed light on the reality of backdoor taxation in Nigeria today.

Backdoor Taxation in Practice

In practice, taxation in Nigeria is largely depends on the tier of government involved. Yet one thing is common across all tiers: no filing is made to accompany payment, (underlining mine for emphasis). Tax payers simply pay without filing.

The observations discussed here are not based on speculation or hearsay but on firsthand experience and consistent field realities.

Federal Government & State Governments

At the federal and state level, tax payers typically remit tax without filing any documentation to disclose income, expenditure, profit or loss. Many assume that since the Act already prescribes a percentage for remittance, they can simply pay the amount.

While this informality may sometimes favour tax payers-allowing them to underpay due to lack of transparency in assessment it is equally disadvantageous to honest taxpayers who assume tax must simply be paid without filing as they lose the opportunity to deduct allowable expenditure from their tax liability.

Under this category, payment depends on the type of tax payers generate an invoice through Remita, pay into the Sigle Treasury Account (TSA) with the Federal Inland Revenue Service (FIRS) or State Internal Revenue Service (SIRS) and then drop a copy of their payment details with the respective office.

Another prominent way tax is paid in here is that many tax payers deliberately ignore their tax liabilities until tax officials visit their premises. During such visits, officials demand documents such as Tax Clearance Certificate for the previous year, Tax Identification Number (TIN), receipts of past payments, pay slips, PAYE remittance records (depending on the type of tax) etc.

At that point, the tax liability is typically negotiated and settled below the actual amount due, with payments made directly into the private accounts of the tax officials. In some cases, the taxpayer visits the revenue office and pays into the account of a preferred official-with or without a receipt.

Despite this informality, such taxpayers are often recorded as “compliant” for the year. No further notices are issued, and no follow up visits are made to verify remittance or ensure accuracy.

Local Government

At the local government level, the situation takes an even less formal turn.

Local government agents routinely visit business and residential premises with demand letters requesting arbitrary amounts for various levies and purposes. In some states as such as Ekiti, Ebonyi and Zamfara, taxpayers are accustomed to this practice that they approach the local councils directly to make payments-often preemptively, or to avoid harassment.

Upon receiving a demand letter, taxpayers are expected to negotiate what they can afford with the officials who served the notice. Once a fair amount is agreed upon, the payment is made directly into the private account of the serving officer and a receipt is issued immediately.

Alternatively, the taxpayer may choose to visit the local government office, negotiate and pay into the private accounts of the staff there. However, it is often considered “safer” to pay the field officers who deliver the demand letters, since they tend to return repeatedly until payment is made.

In a meeting with the Warri South Local Government Council head to requested the official account details of the council in order to make direct payment. the explained that paying directly into the local government account would mean paying the full, ridiculous sum stated in the demand notices, without any room for negotiation and that the procedure to pay same is very stressful and complicated. More revealing, he explained that since the government does not adequately pay the staff responsible for serving tax demand notices, they instead engage locals to deliver those notices and allow them keep part of the collections as compensation-remitting only a fraction to the council as tax.

If there’s a backdoor tax payment the question naturally flows-What’s the right way to pay tax?

TAX PAYMENT PROCEDURE IN NIGERIA

In paper tax can either be filed and paid by:

1. Gathering all required documents such as Tax Identification Number, Annual Return, evidence of income, allowable expenditure etc. depending on the type of tax
2. Download and fill the applicable tax (Form C08A, C08B, C)8C, or C08D)
3. Login to the FIRS self-filing system to file tax returns
4. Ensure that you obtain a receipt or acknowledgement of your records[5]

Causes of Backdoor Tax Payment

The first thing that comes to mind here is corruption, but the question that follows is: what is the cause of corruption? Non-patriotism? Perhaps. Yet, as flimsy and funny as it may sound, the mother of corruption that gives birth to many other forms of corruption in Nigeria including backdoor tax payment is convenience.

Most taxpayers in Nigeria do not know the proper procedure for paying tax-from filing to payment. they either understand the electronic nor the manual methods of filing and payig tax. many also lack the basic accounting skills to compute tax records for filing. Hence, Nigerians often opt for the most convenient method: paying directly into the private accounts of tax officials.

At first, the taxpayer does this in the hope that the official will eventually remit the money into the treasury Single Account. But over time, it becomes more convenient because it allows taxpayers to pay less than their actual liability.

Even Nigerians who understand electronic filing and payment may still resort to backdoor payment due to poor internet connectivity, system downtime, or technical failures on official platforms.

Other causes of backdoor tax payment and evasion

1. Un-skiled Tax Officials – As earlier discussed, many Nigerians do not fully understand the concept of taxation or how it operates in practice. Ironically, many of these individuals are employed in the FIRS and SIRS or now NRS not base on competence but through federal character, tribalism, and favouritism. Sadly, this weakens professionalism and muddles the entire tax landscape. Also, some tax officials intentionally exploit tax payers ignorance to solicit bribes.
2. Non registration of Taxpayers: A large number of taxable persons in Nigeria have not registered or obtained a Tax Identification Number (TIN), making enforcement difficult and tax records incomplete.
3. Lack of technological tools for compliance: In the 21^st century, technology is used globally to make tax administration efficient. But in igeria, public institutions-especially in the tax sector-remain largely analog. It is shameful that in this digital age, tax officials still visit organizations one by one to check compliance, requesting receipts that they themselves issued.

Ideally, technology should enable tax authorities to pull up every Tax Identification Number and automatically generate a list of organizations, businesses and individuals who have defaulted in remittances, triggering penalties or prosecution.

4. Lack of motivation to pay tax – Tax as we know, is an imposition by government to fund public projects such as road construction, and building or renovations of schools, hospitals, courts, etc. However, when taxpayers do not see visible-impact and instead witness blatant embezzlement of public funds they become discouraged and demoralized. This lack of trust leads may to cheat the system by paying only a fraction of their liability through the backdoor, or by evading tax altogether.
5. Non-enforcement of tax Laws– tax evasion is a crime and like every crime, it will persist until government actively enforces the law. Until the system begins to sanction offenders consistently, many taxpayers will continue to evade tax, believing that the enforcement system is weak or even dead.

IS THE NEW TAX REGIME A SAVIOUR TO BACKDOOR TAX PAYMENT/TAX EVASION?

While we must appreciate the new regime for simplifying the Nigeria’s tax system by unifying taxes across the tiers of government- thereby reducing the tax burden on taxpayers, we must not forget  that the major reason behind its creation was Nigeria’s low tax-to-GDP ratio,[6] which ranked among the lowest in Africa in 2024. The new regime was therefore introduced not necessarily to address backdoor payments or tax evasion, but primarily to improve revenue generation.

This brings us to the crucial question:

Will the new tax regime truly improve Nigeria’s tax-to-GDP ratio, or will it become another toothless bulldog?

To answer this, our main focus must be on the Nigeria Tax Administration Act (NTAA), 2025 which serves as the primary legislation for enforcing the substantive law.

To be forward, the Nigeria Tax Administration Act did not expressly envisage backdoor tax payments; however, certain provisions particularly those under Chapter Four (4) could potentially address backdoor taxation and evasion if the law were to meet the realities on ground.

Key Provisions and Their Gaps

1. Failure to register for Tax (Section 4)

The Act provides that a taxable person who fails to register for tax will pay fine of N50,000 for the first month of default and subsequently pay N25,000 for continued default until registration is completed.[7] However, the practical gap lies in identifying unregistered taxable persons in the first place. In reality, Nigeria’s tax enforcement primarily affects those who are visible-such as banks, oil companies and salary earners of banks and oil companies-while many self-employed persons and small businesses remain outside the net.

2. Failure to File Returns and proper book keeping (Section 101& 102)

The Act further provides that a taxable person who fails to file tax returns, or who files incomplete or false returns, shall pay an administrative penalty of N100,000 for the first month of the failure and 50,000 for subsequent failure.[8]

In theory this seem strict, but in practice, the system is not designed to detect defaulters effectively-because many tax-payers self-access and remit payments without proper filing. However, this may work well for corporate taxpayers already in the system. But not for small business owners.

Section 102 of the Act mandates every taxable person to keep proper business records and produce them when requested. Failure attracts N10,000 fine for individuals and N50,000 for companies. This section is not implemented in reality, because small Nigerian traders keep no books at all. Even educated professional rarely keep structured records it’s too much work for most Nigerians to compute records, hence they look for easier alternatives.

3. Failure to use Fiscalisation or Approved Technology (Section 103 & 104)

provides for refusal to use fiscalisation system by tax official and not using the approved electronic system for accounting records the act provides that  taxable person that refuses use of electronic systems like fiscalisation machines after 30 days of receiving the notice, will be liable to pay N1,000,000 for the first day of refusal and N10,000 for each day of refusal. When the taxable person fails to use the approve technology the person will pay a fine of N200,000 plus 100% of tax he should have paid and interest at the Central Bank.[9] This provision is not applicable in reality, if it were many tax payers must have spoken about a time tax officer tried installing a technological device in their premises or fined them for non-compliance. Enforcement may be limited to large retailers, fuel stations and formal enterprises.

4. Failure to Remit or Self-Account for Tax (Section 107)

The Act provides that a taxpayer that fails remit tax by the 21^st of every month will pay the unremitted amount, 10% annual penalty, interest at CB rate, and possible 3 years imprisonment.[10] While this is a powerful anti-corruption, enforcement is still weak as NRS (as the case maybe) must rely on audits, or whistleblowers to detect non-remittance. Also, tax authority rarely prosecutes for non-remittance

5. Failure to comply with Notices/Supply Information (Section 108)

While Section 108 of the Act prescribe daily fine of N100,000.00 per day for ignoring official notices and failing to provide requested data. This is only enforceable to registered taxpayers. The provision is Worthless for unregistered or untraceable taxpayers.

6. Offences by Authorized and Unauthorised Persons

Section 114 of the Act provides for offence by Authorized and Unauthorized Persons it provides thus:

“A person, whether or not appointed for the administration of this Act, any other tax law or employed in connection with the assessment and collection of a tax who-

• Demands or accepts any gratification from a taxable person in the performance of his functions under this Act or any other tax law,
• Withholds for his own use or otherwise any portion of the amount of tax collected,
• Renders a false return, whether orally or in writing, of the amount of tax collected or received by him
• Defrauds any person, embezzles money or otherwise uses his position to deal wrongfully with the relevant tax authority,
• Steals or misuses the documents of the relevant tax authority, or
• Compromises on the assessment or collection of any tax, commits an offence and is liable on conviction to a fine equivalent to 200% of the sum in question or imprisonment for a term not exceeding three years or to both[11]

This section exists precisely because of Nigeria’s long-standing culture of embezzlement and abuse of official positions. Therefore, rather than merely copying OECD-style provisions from foreign models, the Act should have gone further to create practical Nigeria specific mechanisms for accountability.

For instance the Act could have provide specifically, the position of the Nigeria Revenue Service (NRS) staff responsible to collect tax payment. the NRS ought to also have an internal policy regulating the staff, stating what his report should contain, and there should also be an External Auditor to audit the NRS, on tax received, and report to the government.[12]

To answer our question, No-the new tax regime is not a saviour to the Backdoor tax settlement and payment, neither does the act cures tax evasion. In fact, it is important for one to note that the old tax regime, provides for penalties to tax evasion and backdoor payments as it is currently doing yet the reality of taxation did not reflect same.

Nigeria does not have problem with laws, it is one thing to have a law and another thing to ensure it is in practice otherwise the legal space will just be messy unless extra steps (though may seem petty) is taken to ensure our laws barks and bite. Hence to achieve this we must look at the remedies to backdoor tax settlement and payment and tax evasion.

PANACEA TO BACKDOOR TAX PAYMENT/TAX EVASION

1. Technological Enforcement (Digital tax audit): Government should deploy a centralized electronic tax audit system directly linked to the National Identification Number (NIN) National Identification Cards, and Corporate Affairs Commission (CAC) database. This will automatically detect unregistered taxpayers and ensure they comply with the Act by paying fine in accordance with section 100 of the Act.

2. Flat rate tax for small and informal businesses: Local market women, artisans, and other informal businesses with no accounting knowledge should be taxed through a fixed, reasonable flat rate model payable quarterly or annually. This will encourage inclusion without overwhelming non-literate tax payers and reduces the temptation to negotiate payments through backdoor routes.

3. Third party report: Nigerian government should invest in third party report system in ensuring that tax payers file truthful reports. The third-party report is simply NRS tracing digital trail of buyers and comparing same to what sellers file, or checking their banks through their financial reports or getting annual returns filed with CAC.

4. Tax Literacy and Public Awareness Campaign: Many Nigerians pay tax unknowingly (e.g through Stamp duties or VAT) and thus underestimate their civic duty. A consistent awareness program led jointly by the Nigerian Revenue service (NRS) and the media can educate citizens on proper filing procedures, taxpayers rights and penalties for backdoor remittance.

5. Independent Tax Oversight Committee: The NRS should be audited annually by an Independent Tax Oversight Committee (ITOC) comprising civil society accountants, ad judiciary representatives to ensure collected funds are properly remitted to the Single Treasury Account.

6. Judicial and Legislative Reinforcement: Existing penalties in the Nigeria Tax Administration Act must be strictly enforced. Courts should treat tax evasion as economic sabotage, with expedited proceedings and mandatory recovery orders. The legislature should amend the Act to make electronic filing and fiscalisation systems mandatory for all taxable persons within two years of its commencement.

Conclusion

While the Nigeria Tax Administration Act, 2025 and related enactments represent bold attempt to sanitize the fiscal landscape, legislation alone cannot cure systemic rot. Backdoor tax payment thrives not merely because of weak law, but because of weak enforcement and low public trust.

Therefore, to truly strengthen Nigeria’s tax system and improve the tax-to-GDP ratio, reform must go beyond drafting; it must include digital enforcement, human integrity, and practical inclusion of small businesses. Until payment methods are streamlined, monitored, ad trusted, the Nigeria tax regime will remain clean only on paper.

[1] “Revenue Statistic in African 2024- Nigeria”, Organization for Economic Co-operation and Development (OECD) < https://www.oecd.org/cotent/dam/oecd/en/topics/policy-sub-issues/global-tax-revenues/revenue-stastistics-africa-nigeria.pdf > accessed 20th October, 2025

[2] “Top 20 changes to know and top 6 things to do: The Nigerian Tax Reform Acts” < PWC: <pwc.com/ng/en/publications.the-nigeria-tax-reform-acts.html> Accessed 4^th September, 2025

[3] Charles E. McLure Jr. “Taxation” Britannica

[4] Saviour Archibong ‘An Overview of Taxation I Nigeria’ Available at:https://download.ssr.com/24/03/18/ssrn_id4762979_code4809207.pdf?response-content-disposition=inlie&X-Amz-Security-Token=IQoJb3JpZ2VjEKX%2F%2F%2F%@f%2F% (Accessed 4^th September, 2025)

[5] Federal Inland Revenue Service Available at https://ww.firs.gov.ng/company-income-tax?utm_source=chatgpt.comAccessed (5^th September, 2025)

[6] International Monetary Fund (IMF), 2023 “Nigeria’s Tax Revenue Mobilization: Lessons from Successful Revenue Reform Episodes10/13/2025

[7] S. 100 of the Nigeria Tax Administration Act, 2025

[8] S. 101 of the Nigeria Tax Administration Act, 2025

[9] S. 103 and 104 of the Nigeria Tax Administration Act, 2025

[10] S. 107 of the Nigerian Tax Administration Act, 2025

[11] S. 114 (1) (a)-(e)

[12] S. 114 of the Nigerian Tax Administration Act, 2025

OKOROTE OZIOMA NWACHUKWU is a passionate litigation lawyer with a growing interest in taxation, tax reform and governance. Her interest in tax law is driven by a conviction that Nigeria can overcome its mounting debt not only through financial discipline but by giving earnest attention to taxation as a sustainable means of generating revenue and funding national development.

Although she ever set out to be a writer, Ozioma finds herself writing when it becomes necessary, when talking is no longer an option. This work reflects her deep sense of responsibility towards justice, structure and doing things the right way.

Beyond the courtroom, Ozioma is a firm believer in Christ and identifies with the Church of Christ. Her faith shapes her worldview and guides her choices. From her reasoning to her actions and inactions.