The Nigerian Tax Administration Act (NTAA), 2025, signed into law on 26 June 2025, ushers in a sweeping transformation of the country’s tax framework, aiming to streamline administration, enforce compliance, and enhance transparency. But beyond these national objectives, what does this law mean for us—the distinguished alumni of the University of Lagos Faculty of Engineering?

As professionals spread across industry, academia, government, and entrepreneurship, our members are likely to be directly affected by key provisions of the NTAA. Here’s how.

1, Stricter Tax Compliance for Professionals and Business Owners

A significant number of UNILAGFEAA alumni operate private businesses or serve as consultants. Under the NTAA, compliance requirements have tightened. The law mandates annual self-assessment returns for all taxable persons, regardless of business size. For our alumni running consulting engineering firms or working as technical contractors, this could mean enhanced documentation, audits, and closer scrutiny of taxable income streams.

The introduction of digital filing systems and automated compliance checks will require engineering firms to improve their financial reporting mechanisms—potentially increasing operational costs but also fostering more transparent practices.

2, Impact on Alumni Donations and Endowments

UNILAGFEAA has seen significant philanthropic activity, with many sets (1985, 1987, 1995, and others) donating toward infrastructure, lab equipment, and digital learning initiatives. The NTAA now provides a more formal structure for tax-deductible donations—but also imposes stricter rules on transparency, documentation, and valuation of such gifts.

Alumni who donate to the Faculty must ensure that proper records and valuation assessments are made to qualify for relief. This may encourage more structured giving through registered foundations or via the proposed UNILAGFEAA Endowment Fund.

3, Engineering Entrepreneurs Must Prepare for Withholding Tax Expansion

The NTAA expands the scope of withholding taxes (WHT) on professional services. Engineering alumni engaged in contracts—especially those in civil, electrical, or mechanical works—may face upfront tax deductions of up to 10% before payments are made.

This affects cash flow for small firms and independent contractors. It underscores the importance of sound tax planning and building relationships with compliant clients who issue withholding tax credit notes promptly.

4, Digital Services Tax Could Affect Alumni in Tech Ventures

For alumni in the growing tech space—software developers, IoT innovators, or digital platform builders—the NTAA introduces a Significant Economic Presence (SEP) test for digital businesses. This applies even if the company is offshore but serves Nigerian users.

Alumni-led ventures with online platforms must now register for tax in Nigeria, file returns, and pay taxes on revenues generated from Nigerian users—regardless of physical presence.

5, Opportunities in TaxTech and Capacity Building

Interestingly, the NTAA also opens new opportunities for alumni. Tax automation, compliance software, and analytics will become crucial in Nigeria’s evolving tax ecosystem. Engineering alumni with expertise in software, data science, or AI may find space to innovate TaxTech tools for businesses, governments, or NGOs.

Moreover, with the Faculty of Engineering already emphasising teaching, research, and collaboration (as outlined in the 2025 retreat presentations), this shift invites new multidisciplinary projects—such as developing AI tools for audit trails or blockchain for transaction validation.

6, Recommendations for UNILAGFEAA and Its Members

• Raise Awareness: The Association could organize a webinar or invite experts to explain the NTAA’s implications in detail—especially for SMEs and contractors.
• Encourage Structuring: Members should consider formalising businesses and philanthropic channels to align with NTAA compliance structures.
• Engage Tax Professionals: Alumni must work more closely with tax advisers to plan effectively, especially around WHT, digital tax, and donation deductions.
• Advocate for Engineering Sector Relief: UNILAGFEAA can partner with NSE, COREN, and other bodies to advocate for policies that acknowledge the unique challenges in engineering practices.

Conclusion

While the Nigerian Tax Administration Act 2025 poses new challenges, it also creates an opportunity for the UNILAG Engineering alumni community to lead with innovation, compliance, and purpose. Whether as employers, educators, entrepreneurs, or philanthropists, our alignment with the new fiscal environment is critical—not just for our individual growth, but for national development.

Let’s understand it. Let’s adapt. Let’s lead.

KPMG’s Publication on the Nigeria Tax Administration Act (NTAA) 2025