Experts have charged professional engineers in Nigeria to become more responsive to evolving fiscal policies and the changing regulatory environment, particularly following the introduction of the new tax law.

The practitioners were also cautioned against falling into what was described as a “professional trap,” noting that engineers and other professionals are not exempt from tax compliance obligations, regardless of their annual turnover.

Immediate past President of the Nigerian Society of Engineers (NSE), Mrs Margaret Oguntala, gave the charge at a public lecture organised by the Ikeja Branch of the NSE. The event was aimed at guiding professionals against fiscal shocks while enlightening engineering firms on their legal obligation to register for, charge, and remit Value Added Tax (VAT) to relevant authorities.

Oguntala emphasised the importance of the sensitisation programme, stressing that the engineering profession must remain at the forefront of policy advocacy and regulatory compliance.

“The engineering profession must remain responsive to the evolving policy and regulatory environment,” she said, commending the Ikeja Branch for taking the lead in highlighting the implications of the new tax law as it comes into effect.

“This is most apt, as the law has far-reaching implications for engineering practice and project financing. I charge all members to participate actively and ensure a clear understanding of what this new tax law means for our profession,” she added.

Speaking at the forum, tax and regulatory expert, Adelowo Yinka, alongside an auditor and risk manager, Mr Ayinla Omotola, warned that a ‘business-as-usual’ approach to project financing could expose engineering firms to severe legal and financial consequences under the newly unified and modernised tax regime signed into law by President Bola Tinubu. “A professional firm cannot rely on low turnover to avoid VAT registration and filing obligations,” Yinka stated.

He cited Section 23(4) of the Nigeria Tax Administration (NTA) Act 2025, which expressly excludes providers of professional services, including engineering, architectural, auditing, and legal consulting, from being classified as small businesses eligible for tax compliance exemptions.

Yinka further disclosed that the Nigeria Revenue Service (NRS), which replaces the Federal Inland Revenue Service (FIRS), will mandate electronic invoicing. According to him, any invoice lacking a valid Tax Identification Number (TIN) will result in non-deductible expenses for clients and could attract penalties of up to N3 million for the engaging party. “The country is moving toward a system of total fiscalisation,” he warned.

On project sustainability, Omotola challenged engineers to think beyond technical competence and adopt the mindset of financial architects, warning that poor financial forecasting could undermine even the most technically sound projects in a volatile economy.

“Ignorance of the law is not an excuse. As professionals, people believe you have it all—that you can recommend the best financial and operational solutions,” he said.

He stressed the importance of applying financial evaluation tools such as Net Present Value (NPV) and Internal Rate of Return (IRR), noting that failure to account for inflation and currency fluctuations could erase project profits before implementation begins.

“Project finance is a structured approach where debt and equity are repaid from project cash flows, not the sponsor’s balance sheet. Effective investment decision-making ensures that capital is allocated efficiently and returns remain sustainable,” Omotola added.

He also urged engineers to embrace a strong compliance culture and rigorous risk management practices, particularly using Special Purpose Vehicles (SPVs) to isolate financial and legal risks in large-scale projects.

According to him, large-scale green projects could unlock access to global financing opportunities.

“If you have converted from diesel to solar, you can apply for rebates and lower interest rates from institutions like the World Bank or the International Monetary Fund (IMF). But you must be proactive—these credits won’t fall into your lap,” he said, adding that accessing such funds requires a solid understanding of investment principles and ethical standards.

Also speaking, the Chairman of the NSE Ikeja Branch, Nimot Muili, said the programme was designed to equip members with “practical insights needed to maximise benefits and minimise risks” amid rapid regulatory changes.

“Technical skill is the foundation, but tax and financial literacy are the walls that will protect the profession in this new era,” she said.