UFS Attorneys

UFS Attorneys Contact information, map and directions, contact form, opening hours, services, ratings, photos, videos and announcements from UFS Attorneys, Legal, No. 29, Mobolaji Bank Anthony Way, Ikeja, Lagos.

05/01/2026

THE NEW TAX LAWS: WHAT EVERY NIGERIAN SHOULD UNDERSTAND

A lot has been said about the new Tax Acts that officially commenced this January.

In the past few days, I’ve had interesting real-life experiences with shop owners. Some now avoid transfers entirely. One woman even insisted I should write “gift” in the transfer narration. When I asked why, she replied:
“Ah… don’t you see how they are charging us tax now?”
It sounds funny, but it is actually serious.

Let me break the new tax laws down in a way the average Nigerian can easily understand.

Who Really Benefits?

The new Tax Act largely favours the poor, while placing more burden on the middle class and the rich.
And let’s be honest: in today’s Nigeria, anyone earning below ₦100,000 monthly is already struggling.

Who Is Exempt from Tax?

Under the new law:
Individuals earning less than ₦800,000 per year are exempt from tax.

Companies with annual
turnover below ₦50 million are also exempt.

Simple Illustration:
If a person earns ₦1.8 million per year:
The first ₦800,000 is tax-free.
Tax applies only to the remaining ₦1 million
Now, if that person pays ₦500,000 yearly rent:
20% of rent (₦100,000) is deductible
So:
Taxable income drops to ₦900,000
Where there are other statutory deductions like Pension, Insurance, Housing Scheme, these deductions are made before tax. Let us say that the total deduction is 300k, the taxable income becomes 700k.
Meaning, out of ₦1.8m earned, only 700k is taxable

What About Businesses?
Any company with less than ₦50 million annual turnover pays no company income tax under the new law.
There are many such companies in Nigeria today.
Important Takeaway for Business Owners
It is now more strategic to operate as a registered limited liability company, rather than a business name.

Final Thoughts:
The new tax regime clearly targets big earners and large companies.
Whether this will discourage investment or improve revenue collection remains to be seen.

Time will tell.

Happy New Year, and I wish everyone a blessed 2026.
E.F. Obidigwe, Esq.
UFS Attorneys
(Barristers & Solicitors)

10/10/2025

CAN AN EMPLOYER WITHHOLD YOUR SALARY FOR RESIGNATION WITHOUT NOTICE?

Many Nigerian workers resign suddenly when they get a better offer but the big question is: “Can your employer legally hold back your salary because you didn’t give notice?”

The answer depends on your employment contract.

If your contract says you must give one month’s notice (or pay salary in lieu), and you resign without notice, the employer can deduct that amount from your final pay.

But your employer cannot refuse to pay you the entire salary you already worked for. That would be illegal.

In short: They can deduct notice money, but not withhold all your earnings.

Always read your contract before resigning. Sometimes, one month of patience can save you from losing money or even facing legal action.

24/09/2025

WHAT EVERY WORKER SHOULD KNOW ABOUT TERMINATION OF EMPLOYMENT AND SEVERANCE PAY.

It is painful to lose a job, but not knowing your rights makes it worse. Many Nigerian workers don’t realize that there are laws guiding how their employment can be terminated. Although, this depends on the nature of the employment. However, the common things to note are:

a. Your employer must give proper notice or pay salary in lieu of notice (except in cases of gross misconduct).

b. Termination must follow the terms of your employment contract and labour laws.

c. Severance pay (also called gratuity or redundancy package) is not automatic. It usually applies where your contract provides for it, or when workers are laid off due to redundancy.
Pension and other statutory deductions must still be remitted, even if your job ends.

The truth is: being “sacked” doesn’t always mean you lose everything. Sometimes, you may be entitled to money or benefits that employers conveniently “forget” to mention.

Final note: Before you sign any exit papers, ask questions or you can seek legal advice. It may save you from walking away empty-handed.

18/09/2025

EMPLOYEE OR INDEPENDENT CONTRACTOR? WHY IT IS IMPORTANT TO KNOW THE DIFFERENCE.

A lot of people in Nigeria today are working under contracts but don’t really know whether the law sees them as employees or independent contractors. The difference may look small, but it has serious legal consequences.

If you are an employee, your employer must pay pension contributions in accordance with 2014 Pension Act. While the employee contributes 8% and the Employer contributes 10% of the salary. The Employer also provides certain benefits, and follows labour laws before termination.

If you are an independent contractor, you’re basically running your own business. No pension, no job security, and no paid leave but you have more freedom.

Many disputes in court arise when employers deliberately classify workers as “contract staff” to avoid obligations. The law doesn’t just look at the title on your contract; it looks at the substance of the relationship; who controls the work, provides tools, and bears the risk.

Always check your contract. Sometimes, what you are called is not what you really are under the law.

Although, due to the spate of scarcity of job opportunities in Nigeria, a lot of employees are more interested in laying their hands on anything in order to make ends meet.

11/09/2025

NIGERIAN WOMEN AND THEIR RIGHTS OF INHERITANCE, LANDMARK CASES:
For years, some Nigerian customary laws denied women the right to inherit their father’s property. The courts, step by step, dismantled those customs and upheld the Constitution.
Here are three landmark cases every Nigerian should know:
Mojekwu v. Mojekwu (1997) 7 NWLR (Pt. 512) 283 (CA)
Custom in Question: Oli-ekpe of Nnewi (if a man dies without a male child, his brother inherits the property; daughters are excluded).
Court of Appeal (per Niki Tobi, JCA): Held the custom repugnant to natural justice, equity and good conscience.
Principle: A daughter cannot be denied inheritance simply because she is female.
Moujekwu v. Ejikeme (2000) 5 NWLR (Pt. 657) 402 (CA)
Custom in Question: Nrachi of Nnewi (a daughter must remain unmarried and bear male children in her father’s house before she can inherit).
Court of Appeal (per Fabiyi, JCA; Niki Tobi, JCA concurring): Declared the custom repugnant and invalid.
Key Holdings:
A female child does not need Nrachi to inherit.
Circumstances of birth (legitimacy or not) do not bar inheritance.
Customs that encourage immorality or discriminate against women cannot stand.
Principle: Discriminatory customary laws fail both the repugnancy test and Section 42(1) & (2) of the 1999 Constitution (freedom from discrimination).
Ukeje v. Ukeje (2014) 11 NWLR (Pt. 1418) 384 (SC)
Custom in Question: Igbo customary law that excludes daughters from inheriting their father’s estate.
Supreme Court (per Rhodes-Vivour, JSC): Held such a custom unconstitutional because it violates Section 42(1) & (2) of the 1999 Constitution.
Principle: No Nigerian woman can be denied inheritance rights on the basis of gender.

23/06/2025

In our last post, we talked about "trust in law," and we stated that there are two main types of trust: express trust and implied trust.
Under implied trust, we have what is known as 'Resulting Trust,' and that is the target of this post.

The principle of resulting trust is a concept in equity and trust law that arises when property is transferred to someone, but it is presumed that the person receiving the property is not intended to benefit from it. Instead, it is assumed that the property "results" back to the person who provided the purchase money or originally owned it.

There are two main categories:

1. Presumed Resulting Trust

This arises in situations where:

A person transfers property to another without receiving anything in return, and there is no clear evidence that it was a gift.

A person buys property in the name of another using their own money.

The law presumes that the person did not intend to make a gift, and therefore a trust arises in favour of the person who provided the money.

Example:
If A gives money to B to buy land, but B registers the land in their own name, it is presumed that B holds the land on trust for A.

2. Automatic Resulting Trust

This arises automatically in situations such as:

When a trust fails (e.g., the purpose of the trust cannot be fulfilled).

When there is a surplus in a trust after its purpose has been carried out.

In such cases, the remaining property "results" back to the settlor (the person who created the trust) or their estate.

Example:
If A sets up a trust to build a school, and after construction there is leftover money, that surplus may go back to A or A's estate under a resulting trust.

Legal Presumption and Rebuttal

The presumption of a resulting trust can be rebutted if there is evidence that a gift was intended (especially among close family members, such as from parent to child).

to be cont.....

14/06/2025

Let us discuss briefly discuss the meaning of TRUST in law.

What Is Trust in Law?

In law, a trust is a legal relationship in which one person (called the trustee) holds property for the benefit of another person (called the beneficiary) under terms set by the person who creates the trust (called the settlor).

Definition (General Legal Terms)

> A trust is a fiduciary relationship where a trustee holds and manages property for the benefit of one or more beneficiaries, in accordance with the instructions of the settlor.

Elements of a Valid Trust

1. Settlor – The person who creates the trust.

2. Trustee – The person or entity who holds the legal title and manages the trust property.

3. Beneficiary – The person for whose benefit the trust is created.

4. Trust Property – The asset(s) placed in trust (e.g., land, money, shares).

5. Intention – The settlor must clearly intend to create a trust.

6. Legal Purpose – The trust must not be illegal or against public policy.

Types of Trusts

1. Express Trust Intentionally created by a settlor through a deed or will.

2. Implied Trust Arises by operation of law, including:
3. Resulting Trust (e.g., when intention is not to gift property)
4. Constructive Trust (e.g., to prevent fraud or unjust enrichment)

5. Private Trust Made for the benefit of specific individuals.
6. Public/Charitable Trust Created for charitable or public purposes.

Trust in Nigerian Law

Trust is recognized both under common law and equity in Nigeria. It is commonly applied in:

Land and property transactions

Wills and estates

Family arrangements

Company structures

Key Case (Nigerian)

Okelola v. Boyle (1998) 1 NWLR (Pt. 534) 436 (SC)

The Supreme Court described a trust as:

> “A confidence reposed in one person by another, where the former has a legal duty to deal with property for the benefit of the latter.”

29/07/2024

Before you buy that family land, make sure that you do your due diligence to ascertain those who can in law, validly transfer family land to another person. Who are they?
1. Family Head and
2. Principal members.

Can a family head solely transfer a family land to another person without the consent of the principal members? The answer is yes but such transfer is voidable where a principal member opposes it. He can approach the court and pray the court to void it. But where none of the principal members opposes it, such sale of land is valid in law.

Now, can any other person sell and validly transfer family land to another person without the consent of the family head? The answer is no. Such sale is void ab initio. Meaning that there is never a sale from the beginning.

So, before you part with your hard earned money in buying a family land, be careful before you lose your money.

Thank you...

22/07/2024

What are the five ways of proving title to land? These are:

1. By traditional history
2. By acts of ownership such as selling, leasing, renting out the land
3. By production of documents of title duly authenticated
4. By acts of long possession and enjoyment over the land
5. By acts of possession of connected or adjacent land in circumstances rendering it probable that the owner of such connected or adjacent land would in addition be the owner of the land in dispute.

Proof of any of the above listed ways is sufficient to grand declaration of title.

But the courts have ruled that, possession, no matter how long, cannot ground a claim in title against the true owner. (Nwosu v. Udeaja (1990) 1 NWLR (pt. 125) 188.

19/07/2024

CONVEYANCING: In law, conveyancing means the legal process of transferring real property from one person to another. It is the legal process involved when ownership of a real property is transferred from the seller to the buyer.

In OLUWU V. B.S.LTD (2010) 2 N.W.L.R (PT. 1178) 310 CA,

The court stated that:

"There are two stages in conveyancing contract. In the first stage, the parties have to agree on terms of SALE, that is, the contract stage. The second stage is the conveyancing stage, that is, the procedure for valid title."

It is only after a binding contract for sale is arrived at that the need to purse the procedure for acquiring title will arise. That is, when the obtainment of the necessary consent to alienate the property becomes an issue in order to make the alienation valid.'

Now, in a nutshell, if you want buy land, ensure that you execute contract of sale first. This is important so that if anything goes wrong, you will be able to go to court for enforcement of terms contained in the contract of sale.

Then the last is Deed of Conveyance. This is necessary when you want to perfect your title.

13/06/2024

CAN A CONTRACT BE IMPLIED?

The answer is yes. In implied contracts, the terms are not expressly stated. The court in such circumstances will normally construe the existence of a contract from the CONDUCT of the parties rather than from their words. For example, a passenger usually enters a bus without any dialogue between him and the conductor or driver. Yet, to all reasonable men, his action implies that he will pay his fare while the bus owner is obliged to carry him safely to his destination provided it is on the route of that bus.

An example of a contract by conduct was well adjudicated in the case of De Geophysique Nig. Ltd V. Okparavero Mem. Hospital Ltd (2012)2 CLRN 70.

In the above case, the appellant company refused to pay bill presented to it by the respondent hospital for the treatment of two members of its staff. It based its rejection of the bill on the ground that it had no retainership agreement with the respondent hospital and never requested such medical treatment.
Evidence had it that on many occasions before then, the appellant's staff had been brought to the respondent hospital for treatment and the appellant had always paid the bills.

It was held by the court that a contract can be implied by the conducts of the parties to the contract.

03/06/2024

ON MEANING OF FRUSTRATION OF CONTRACT:

Frustration, in its ordinary simple and straightforward meaning, is the prevention or hindering of the attainment of a goal. Frustration in the law of contract occurs wherever the law recognises that without default of either party, a contractual obligation has become incapable of being performed because the circumstances in which performance is called for would render it radically different from what was undertaken by the contract.

Take home from here is that frustration of contract is not caused by either party to the contract. It's independent of the parties.

Address

No. 29, Mobolaji Bank Anthony Way, Ikeja
Lagos

Website

Alerts

Be the first to know and let us send you an email when UFS Attorneys posts news and promotions. Your email address will not be used for any other purpose, and you can unsubscribe at any time.

Shortcuts

Share

Category