Business, Lifestyle, Politics

Reasons FG Disburses ₦1.1 Billion in Legal Fees to Prominent Lawyers, Including Afe Babalola and Wole Olanipekun

Published by admin on December 29th, 2024.

Reasons FG Disburses ₦1.1 Billion in Legal Fees to Prominent Lawyers, Including Afe Babalola and Wole Olanipekun

Bola Ahmed Tinubu, FRN President

The Nigerian government has paid a total of ₦1.1 billion in professional fees to top legal practitioners over a three-year period, according to data from the government expenditure tracking platform, GovSpend.

The Federal Ministry of Justice made these payments to renowned Nigerian lawyers, including Chief Afe Babalola, SAN, Wole Olanipekun, SAN, and 23 other law firms, for a variety of legal services. These services ranged from providing legal counsel and drafting documents to representing the government in court cases. They also involved tasks such as risk assessments in business and real estate dealings, mediation, advocacy, lobbying, and ensuring regulatory compliance.

Although there are official guidelines for legal fees in Nigeria, including the Legal Practitioners Remuneration Order 2023, which outlines the scale of charges, the substantial payments have raised concerns over transparency in government spending.

A closer look at the payments revealed that in July 2024 alone, Babalola, Olanipekun, and Dr. Alex Izinyon, SAN, collectively received ₦482.7 million from the Ministry of Justice. Of this amount, Babalola was paid ₦372.9 million on July 23 for representing the Federal Government in a court case (FHC/ABJ/SC/8962/2023). Olanipekun and Izinyon received ₦103.6 million and ₦6.2 million, respectively, for similar legal services at different times.

In addition, records from 2022 indicate that 17 lawyers received a combined total of ₦359.7 million, while four lawyers were paid ₦319.3 million in 2021. Among the 2022 beneficiaries were firms such as Savannah Law Chambers, Lex Habitae, Rashida Mohammed & Co., and Abdullahi Haruna & Co., each receiving payments ranging from ₦17 million to ₦70.9 million.

The 2021 payments included ₦174 million to Mr. Chikwendu Madumere, ₦21.8 million to LDS Legal, and ₦100.5 million to Sulaiman Salihu & Co., paid in two separate tranches.

Interestingly, both Afe Babalola and Wole Olanipekun paid substantial taxes as part of their fees. Babalola remitted ₦31 million in Value Added Tax (VAT) to the Federal Inland Revenue Service, while Olanipekun paid ₦8.6 million in VAT. Additionally, both lawyers paid withholding taxes of 10%, amounting to ₦41.4 million for Babalola and ₦11.5 million for Olanipekun, to the Ministry of Justice.

The disclosure of these significant payments has prompted discussions about the management and accountability of government finances, particularly with regard to high-profile

legal expenses.