The Association of Town Planning Consultants (ATOPCON) has been called upon to fully utilize the provisions of the new Nigerian Tax Act, particularly the incentives designed for professionals in the real estate and built environment sectors. Experts emphasize the importance of maintaining accurate and well-defined records of urban planning transactions to ensure proper tax compliance.
Opportunities in the New Tax Framework
Industry experts have advised practitioners to thoroughly explore the opportunities embedded in the new tax law, noting that it introduces both obligations and incentives that could significantly reshape professional practice in the sector. Town planning consultants operate at the intersection of professional services, property development, infrastructure delivery, and government procurement—areas directly impacted by the new tax framework.
Key Tax Considerations for Town Planners
The new tax act covers several key areas relevant to town planning consultants, including Value Added Tax on services, withholding tax on professional services, Companies Income Tax, Personal Income Tax, development levy, capital allowances, and stamp duties on instruments.
Mrs. Olufunlola Adediran, a professional accountant and tax administrator, delivered this charge at the Association of Town Planning Consultants of Nigeria (ATOPCON), Lagos branch, 2026 Annual General Meeting held in Lagos. Her presentation was titled “The Nigeria Tax Act, 2025: The impact on town planning consultancy services.”
Taxable Services and Exemptions
Adediran explained that taxable supplies for town planners include preparation of layout plans, environmental impact assessments, urban renewal projects, subdivision, zoning and regularisation services, as well as training and seminars. She stated, “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 noted that town planning firms incorporated as limited liability companies are subject to Companies Income Tax on profits, with rates dependent on company size. However, a key insight is that many small-scale town planning practices in Nigeria, with turnovers below N100 million, may be exempt from CIT under Section 56 of the NTA 2025.
Adediran added that town planners frequently handle land instruments, share transfers, and government contracts, many of which may be subject to stamp duty exemptions under Section 184 of the law.
Government as a Sleeping Partner
“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, whether as individuals or corporate organisations, will go to the government through taxes, even though it is believed that the government is not directly involved in our business. Taxes are used to provide infrastructure, and Nigeria is not an exception,” she said.
She warned consultants against conflating personal income with business income, stressing that proper separation improves compliance and may reduce tax burden. According to her, town planners must manage layered tax obligations throughout the year, and failure to meet deadlines attracts automatic penalties under the new law.
Proactive Tax Planning
Adediran further explained that proactive tax planning under the NTA could significantly reduce a firm’s effective tax rate while ensuring full compliance. She said the reform broadly protects non-residents and diaspora Nigerians whose income is earned entirely abroad, while introducing clearer obligations for those with Nigerian-sourced income or significant ties to the country.
She added that incentives such as small company exemptions, economic development tax reliefs, and expanded VAT input recovery create opportunities for professionals who engage proactively with the framework.
Commitment to Professional Development
The Chairman of ATOPCON Lagos branch, Bello Akinwale, said the session was convened to sensitise members on the implications of the new tax reform for planning consultancy services, noting that taxation remains a major issue affecting professionals and businesses nationwide. He said the expert presentation had helped members understand the key provisions of the law, areas of direct impact on their work, and steps needed to avoid non-compliance. He also encouraged members to embrace continuous training and retraining to strengthen professional competence.
Sustainable Business Models
Past President of ATOPCON and Chairman of the occasion, Waheed Kadiri, said understanding evolving policy frameworks is essential to maintaining a competitive and sustainable practice in town planning. He noted that consultancy firms must move beyond income generation to sustainable business models capable of surviving shifts in economic and tax regimes.
“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 environments through strategic planning,” he said.
Kadiri also highlighted the need to address underpricing, weak collaboration, and continuous professional development within the sector. He urged practitioners to embrace innovation, strengthen technical capacity, adopt emerging technologies, and deepen collaboration among professionals.
“We must embrace innovation, strengthen technical capacity, adopt emerging technologies, and build stronger collaboration among professionals. We must accept the creative advantage of colleagues in specialised areas of collaboration. I call on all members to be committed to professionalism, integrity, innovation, and collective responsibility,” he said.
