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In Nigeria’s evolving tax environment, clear and strategic contract drafting is essential. In this article, TEMPLARS Partner, Dipo Komolafe, and Associate, Jewel Egelege explain how tax indemnities and net‑of‑tax/gross‑up clauses are used to allocate tax liabilities and guarantee payment outcomes.

The article notes that while the extant tax laws will be phased out by 2026, there are no substantive changes to the treatment of tax management and distribution clauses under Nigerian contracts, reinforcing the continued relevance of these contractual protections under the new tax framework.

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