Abuja, Nigeria – The Federal Ministry of Justice has paid a staggering N1.1 billion in professional fees to prominent Nigerian lawyers and law firms over a three-year period, according to an analysis of data from GovSpend, a government expenditure tracking platform.
The payments, made to top legal practitioners such as Chief Afe Babalola, SAN, Wole Olanipekun, SAN, and Dr. Alex Izinyon, SAN, as well as 23 other law firms, have sparked discussions about transparency and accountability in government spending.
Breakdown of Payments
In July 2024 alone, Babalola, Olanipekun, and Izinyon collectively received N482.7 million for legal services rendered to the Federal Government. Babalola was paid N372.9 million on July 23 for representing the government in a court case (FHC/ABJ/SC/8962/2023), while Olanipekun and Izinyon received N103.6 million and N6.2 million on July 26 and July 29, respectively.
Further analysis reveals that in 2022, 17 lawyers and law firms received a total of N359.7 million in professional fees. Among the beneficiaries were Savannah Law Chambers (N17.4 million), Lex Habitae (N21.8 million), Rashida Mohammed & Co (N17.4 million), and Abdullahi Haruna & Co (N17.4 million).
Other notable payments included N70.9 million to LDS Legal, N15.7 million each to King’s Chambers and Iwuanyanwu & Co, and N31.4 million to Sulaiman Salihu & Co, disbursed in two tranches.
In 2021, the ministry paid N319.3 million in legal fees to four law firms, including N174 million to Mr. Chikwendu Madumere, N21.8 million to LDS Legal, N21.8 million to Olowolafe & Co, and N100.5 million to Sulaiman Salihu & Co, also disbursed in two tranches.
Scope of Legal Services
The payments covered a broad range of legal services, including litigation, legal advisory, drafting documents, negotiation, mediation, and regulatory compliance. Some services extended to transactional tasks, such as identifying potential legal risks in real estate or business dealings, advocacy, lobbying, and risk management.
Compliance with Tax Obligations
As part of their payments, Chief Afe Babalola paid a 7.5% Value Added Tax (VAT) amounting to N31 million and a 10% withholding tax of N41.4 million. Similarly, Wole Olanipekun paid N8.6 million in VAT and N11.5 million in withholding tax to the Ministry of Justice.
Calls for Transparency
The Legal Practitioners Remuneration Order, 2023, sets guidelines for legal fees in Nigeria, but the N1.1 billion expenditure raises concerns about the transparency of government transactions. Critics argue that such payments demand greater scrutiny to ensure accountability in the management of public funds.
While the scope of services provided by the lawyers is broad and essential, questions remain about the prioritization of such expenditures, particularly in light of Nigeria’s ongoing economic challenges.