The Lead Story
Lawyers, Meet Your New VAT Tab
The Big Picture: The Federal Inland Revenue Service (FIRS) just made it crystal clear: come January 1, 2026, every brief, motion and billable hour will carry a 7.5% Value Added Tax. The reminder landed at the Nigerian Association of Law Teachers’ annual conference, and it signals how serious Abuja is about widening the tax net before the new reform cycle kicks in.
The Details: Speaking through policy chief Bright Igbinosa, FIRS boss Zacch Adedeji told scholars that legal practitioners are squarely in the “taxable services” bucket, Guardian reports. The agency stressed that the update isn’t a cash grab but part of a drive for “fairness, transparency, and compliance.” Traders, military personnel, workers making under ₦800,000 a year, and SMEs with turnover below ₦100 million remain exempt,and can even request a VAT refund within 30 days if wrongly charged.
Why It Matters / What They’re Saying: The reaction was swift in the lecture hall. Some attendees worried the levy will raise legal costs, but Adedeji countered that expanding the base actually “reduces evasion and strengthens the system.” The 2026 playbook also lets FIRS tap third-party agents to collect from defaulters abroad,another sign that the taxman’s reach is going global.
Around the Tax World
- 10% haircut on short-term yields: Banks must now withhold 10% on interest from treasury bills, corporate bonds and similar paper, according to a fresh FIRS circular (Nigeria Info). Interest on FGN bonds keeps its tax-free status.
- BusinessDay rolls out “Tax Aid”: On 3 November, the publisher will debut an online intelligence hub packed with explainers, calculators and subscriber-only podcasts to decode Nigeria’s new rules (BusinessDay).
- Fake party levy debunked: Viral claims that Oyo State introduced a ₦35,000 tax on weddings, burials and birthdays are “fake and misleading,” the information commissioner told Africa Check.
- Courts hold the key: Clear judicial interpretation is “indispensable” for investor confidence, Adedeji said at a separate forum, urging judges to keep rulings consistent with reform goals (Premium Times).
By the Numbers
Tax Stat of the Day: 10% , the new withholding tax rate banks must skim off interest on short-term securities before paying investors.
Looking Ahead
All eyes are now on 1 January 2026, when the VAT mandate for lawyers and the broader reform package go live. Expect additional guidance from FIRS for banks and professional firms in the weeks ahead.
Prepared by MyTax - mytax.com.ng