Legal Practitioners( Remuneration For Business, Legal Services And Representation) Order 2023

In exercise of the powers conferred by section15(3) of the Legal Practitioners Act and all other powers enabling in that behalf, the Legal Practitioners Remuneration Committee makes the following Order-
1.Regulation of remuneration generally.
 (1) The remuneration of a legal practitioner for business and services rendered shall in respect of-(a) any consultation and legal opinion, be as prescribed in Scale 1 set out in the Schedule to this Order;
(b) incorporations, or registration of Companies and Business Names be as prescribed in Scale 2 set out in the Schedule to this Order;
(c) litigation, be as prescribed in Scale 3 set out in the Schedule to this Order;
(d) property transactions, including Mortgages and related transactions be as prescribed in Scale 4 set out in the Schedule to this Order.
  (2) Without prejudice to any arrangement reached between a legal practitioner and his client on a percentage-based fee in respect of commercial or other transaction or service not covered in (a)-(d) above, the remuneration of a legal practitioner shall be as prescribed in Scale 5 set out in the Schedule to this Order,
Provided that no percentage-based fee arrangement shall be lower than the minimum hourly rate prescribed in Scale 5.
2.Remuneration with respect to other matters.
The scale of charges for any business or service not provided in this Order shall be such as may be fair having regard to the circumstances of each case and in particular to:
(a) the complexity of the matter or the difficulty or novelty of the questions raised;
(b) the skill, labour, experience, specialised knowledge and responsibility involved on the part of the legal practitioner;
(c) the number and importance of the documents prepared or perused, without regard to length;
(d) the time expended by the legal practitioner on the business or service;
(e)the place and the circumstances in which the business or service, or a part thereof is transacted or carried out;
(f) the turn around time required by a client for completion of the business;
(g)the amount of money or value of property involved; and
(h)the importance attached to the business by the client.
3.Exclusion of certain expenses
(1) The remuneration prescribed in scales 1 to 5 set out in the Schedule to this Order shall not, unless as may be agreed by the parties, include costs and disbursements associated with –
(a) stamps, auctioneer’s or valuer’s charges, travelling expenses, fees paid on searches, fees paid to government or its agencies on registrations, costs of extracts or certified true copies of such from any register, court filing costs or other disbursements reasonably and properly paid;
(b) any extra work occasioned by changes occurring in the course of any business such as the death, insolvency or winding up of a party to the transaction;
(c) any application for first registration under any enactment relating to registration of any title to land or any other interest in land and associated filing costsnecessitated by a transaction for which a scale of fee is payable to the legal practitioner;  

(d) any application for consent required under the Land Use Act but shall include any engrossing charge and allowance for the time of the legal practitioner and his support staff and copying and parchment and all other similar disbursements.

 (2) In this order –.
​“Fees paid on searches” means-
(a) charges levied by any registry for permitting searches to be made;
(b) charges, if any, levied by any registry for providing an official search; and
(c) fees paid to a legal practitioner for making a search at a registry outside the district in which the legal practitioner having the conduct of the business carries on his practice.

4.Drafts to be client’s property.
Drafts and copies of documents or instruments made in the course of business for which remuneration is provided for by this Order shall be the property of the client.
5. A Legal practitioner may elect to charge differently.
In all cases to which the remuneration prescribed in Scales 1 to 5 set out in the Schedule to this Order would, be chargeable, a legal practitioner may before undertaking any business or service, by writing under his hand communicated to the client-(a) elect that his remuneration shall be in accordance with the provisions of order 2 of this Order; and
(b) such remuneration shall not be lower than the minimum set out in the relevant or appropriate Scale.
6.Security against remuneration interest on disbursement.
(1) A legal practitioner may accept from his client, and the client may give to his legal practitioner, security for the amount to become due to the legal practitioner for business or services to be transacted by him and for interest on such amount but such interest shall not commence till the amount due is ascertained, either by agreement or taxation.
(2)A legal practitioner may charge interest at 10 percent per annum on his disbursement and cost whether by scale or otherwise, after the expiration of one month from demand from the client; and where the disbursement and cost are payable by an infant or out of a fund not presently available, the demand may be made on the parent or guardian or the trustee or other person liable.
7.Legal practitioner to issue terms of engagement in writing.
(1) A legal practitioner shall, before commencing work on any business or service, and not later than 14 days of receipt of instructions, issue written terms of engagement to his client, setting out the scope of work and fees, provided that where certain fees are not ascertainable at the time of issuing the engagement letter or terms of engagement, this must be expressly stated.

(2) Where a legal practitioner-
(a) performs any work outside the stated scope of work; OR
(b) where the fees for the business or service becomes greater than what is mentioned in the engagement letter or terms of engagement; or
(c) where the fees for the business or service becomes ascertainable, the legal practitioner may issue another engagement letter or terms of engagement to cover the new facts.

(3) A legal practitioner who fails to issue written engagement letter or terms of engagement to a client is liable for unprofessional conduct and shall be liable to such punishment as may be prescribed by the Legal Practitioners Disciplinary Committee.

8.Fees chargeable to be as specified in Scales.
(1) The fees chargeable for any business or service conducted by a legal practitioner are as prescribed in the Scales set out in the Schedule to this Order and they are not subject to negotiation except as prescribed in this Order.
(2) A legal practitioner who contravenes the provisions of suborder (1) of this order is liable for unprofessional conduct and shall, without prejudice to the provisions of this Order be liable to such punishment as may be prescribed by the Legal Practitioners Disciplinary Committee.

9.Rules for the operation of fees specified in the Scales.
 The operation of the provisions of Scales 1 to 5 shall in each case be subject to the rules attached to each scale, if any.
10.Legal practitioner charging remuneration lower than as prescribed in scales 1 to 5.
(1)  Where a legal practitioner intends to charge or agree to any remuneration for any business or service which is lower than the amount specified for any of the businesses or services in Scales 1-5, he shall within 2 days of receiving such instructions from the client–
(a) apply to the Remuneration Committee of the Bar Association for an approval or refusal of the proposed remuneration; and
(b)disclose to the committee, in writing, the circumstances necessitating the intention to charge the lower remuneration.
(2) Upon receipt of any communication from a legal practitioner with respect to the intention to charge a lower remuneration, the Remuneration committee of the Bar shall investigate the claims within 7days and either approve or refuse the application.
(3) The committee shall inform the legal practitioner of its decision within 2days of reaching a decision and the legal practitioner shall comply accordingly.
(4)An application made under this order shall not prevent the legal practitioner concerned from commencing or continuing work on the business while he awaits the decision of the committee.

(5) Where the committee rejects the application-(a)the legal practitioner shall issue his client an engagement letter or terms of engagement detailing the work covered by the client’s instruction and the appropriate fees payable as prescribed in scales 1 to 5 set out in the Schedule to this Order; and
(b)attach a copy of the decision of the Remuneration committee of the Bar.

 (6) Where the Remuneration Committee of the Bar fails to reach a decision or convey its decision on an application made under this order within the stated period, the application shall be deemed to have been granted.

11.Committee to receive report on remuneration A person who, has knowledge that a legal practitioner has charged or agreed to a remuneration in contravention of the provisions of this Order shall report such legal practitioner to the Remuneration Committee of the bar and the branch of the bar where the legal practitioner carries on his practice, which shall investigate the infraction and upon a prima facie case being made, report the erring legal practitioner to the Legal Practitioners Disciplinary Committee.

12.Guidelines to be set.
The Nigerian Bar Association shall set guidelines to be followed by the Remuneration committee of the Bar in the performance of its functions under this Order.
13. Exemption of Gratuitous service
(1) Notwithstanding anything above, a legal practitioner may, in legal aid matters recognised under the Legal Aid Act 2011 or any applicable statute for the time being in force, charge a lower fee than set out in the Schedule to this Order, or provide his services pro bono, in both instances, as provided in the relevant statute. A legal practitioner may also in consideration of his relationship with his client by consanguinity or affinity, charge no fees for legal services provided to the client.
(2) Where a legal practitioner intends to charge lower fees or no fee for legal services as a result of legal aid service, or by reason of his relationship with the client in accordance with sub-section (1) of this Section, he shall provide the following to the remuneration committee of the NBA prior to commencing the work:
(a) A copy of the contract or letter under which his services were engaged by the client, duly executed by the legal practitioner and the client stating expressly the probono terms applicable.
(b) A statement on oath explaining his relationship with the client.

14.Interpretation.
In this Order-
“Bar or Bar Association” means the Nigerian Bar Association;
“Business” means any service rendered or performed by a legal practitioner for a client which he is empowered to perform by reason of being a legal practitioner and includes such other service as a client may require a lawyer to perform;“Charges” has the same meaning as provided for in the Legal Practitioners Act or the Legal Practitioners (Remuneration for Business and Legal Services and Representation) Order.

“Client” means anyone on whose behalf a legal practitioner prepares a land instrument.

“Deed” means lands instruments as defined by the Lands Instruments Registration Laws of the various States as may be applicable and the Federal Capital Territory, Abuja and any document prepared by a legal practitioner that affects any interest in land.

“Property Instruments” shall mean documents and agreements relating to tenancies, leases, sale, assignments, mortgages and related instruments pledging or transferring interest in real property under any guise or form of transaction

“Remuneration” includes professional fees, commission, charges or reward payable to a legal practitioner for service rendered to a client;“Remuneration Committee” means the Committee of the Nigerian Bar Association (NBA) set up to implement provisions of this order;“States” shall include the Federal Capital Territory. Abuja.

“State band 3” includes Federal Capital Territory and Lagos State;
“State band 2” includes Akwa Ibom, Bayelsa, Benue, Cross River, Delta, Edo, Ekiti, Kwara, Kogi, Nasarawa, Niger, Ogun, Ondo, Osun, Oyo, Plateau and Rivers States;
“State band 1” includes Abia, Adamawa, Anambra, Bauchi, Borno, Ebonyi, Enugu, Gombe, Imo, Jigawa, Kaduna, Kano, Kastina, Kebbi, Sokoto, Taraba, Yobe and Zamfara States

“State band 1,2 and 3” mean, with respect to a legal practitioner’s remuneration, the state where the legal practitioner carries on his practice or the state where the business or service is to be carried out.

“Tax office” means any government agency which has jurisdiction over finance, internal generated revenue, and taxation in the various States in Nigeria and the Federal Capital Territory, Abuja.

15.Citation and revocation.
(1) This Order may be cited as the Legal Practitioners(Remuneration for Business, Legal services and Representation) Order,2023.
(2) The Legal Practitioners’ (Remuneration for Legal Documentation and other Land Matters) Order,1991 is revoked.

Dated this ______ day of ____ 2023.
ABUBAKAR MALAMI (SAN)
ATTORNEY-GENERAL OF THE FEDERATION AND CHAIRMAN OF THE

LEGAL PRACTITIONERS’ REMUNERATION COMMITTEE

SCHEDULE

ORDER 1 and 8

Scale of Charges on Consultancy and Legal Opinion

Scale 1

Scale 2

Scale of charges on incorporation of companies and business names

Scale 3

Scales of charges on Litigation

Civil Litigation

39

.

Criminal Litigation

Appeals

Scale 4

Scale of charges on Property Transactions including mortgagesand Rules Applicable thereto

 Assignments, Conveyances and Mortgages

Leases and Tenancies

Rules Applicable to Scale 4

1. Legal practitioner representing both parties

Where a legal practitioner is representing both-

(a)vendor and purchaser;

(b)lessor and lessee; or

(c)assignor and assignee,

he is entitled to a minimum of 10% of the value or consideration as fees (the contribution rate to be agreed with both contracting parties).

2.(1) Where the lessor’s or landlords’ legal practitioner–

(a) prepares the agreement;

(b)and same is reviewed by the lessee’s or tenants’ legal practitioner, the lessor or landlord’s legal practitioner shall be entitled to 7.5 percent of the value or consideration as fee while the lessee’s or tenant’s legal practitioner shall be entitled to 2.5 percent of the value or consideration as fee.

(2) Where an assignor or a vendor insists on his legal practitioner preparing his legal document, such legal practitioner shall be entitled to 2.5 percent of the value or consideration as fee while the assignee or purchaser’s legal practitioner shall be entitled to 7.5 percent.

3.Legal practitioner representing parties with distinctive interests

Where a legal practitioner peruses a draft on behalf of several parties having distinct interests which ought to be separately represented, he shall be entitled to charge each party 5 percent of the value or consideration payable under the transaction.

4.Legal documentation prepared at the same time

Where legal documents of the same property are completed at the same time and are prepared by the same legal practitioner, he shall be entitled to charge as provided for under rule 3 of these Rules, under this scale.

6.Commission/fees for sale by auction

The Commission/fees for deducing title, perusing and completing legal documentation on a sale by auction shall be chargeable on each lot of property, but where a property held under the same title is divided into lots for convenience of sale and the same purchaser buys several lots and takes one legal document, the commission or fees shall be chargeable upon the aggregate prices of the lots.

7.Attempted sale by auction

(1) The commission/fees on an attempted sale by auction in lots shall be chargeable on the aggregate of the reserved prices.

(2) When property offered for sale by auction is bought and the terms of sale are afterwards negotiated and arranged by the legal practitioner, he shall be entitled to charge a commission/feesaccording to the above Scale on the reserved price where the property is not sold and also half of the commission for negotiating the sale.

(3) When property is bought and afterwards offered for sale by auction by the legal practitioner, he shall only be entitled to charge fees for the first attempted sale and for each subsequent sale ineffectually attempted, he shall charge his fees according to the provisions of Scale 4 set out in this Schedule.

(4) In the case of subsequent effectual sale by auction, the full commission for an effectual shall be chargeable in addition less one half of the commission previously allowed on the first attempted sale.

(5) The provisions of these Rules as to commission/fees on sales or attempted sales by auction shall be subject to rule 10   of these Rules.

8.Encumbrances

Where a property is sold subject to encumbrances, the value of the encumbrances shall be deemed a part of the purchase money, except where the mortgagee purchases, in which case the charges of his legal practitioner shall be calculated on the price of the equity redemption.

9.Transfer of mortgage

The Scale for mortgage shall apply to transfer of mortgage where the title is investigated but not-

and the transfers and further charges, shall be regulated according to Scale IV set out in this Schedule, but the Scale for negotiating the loan shall be chargeable on such transfers as applicable.

10.Sale by auction

(1) The Scale for conducting a sale by auction shall apply only in cases where no commission is paid by the client to an auctioneer.

(2) The Scale for negotiation shall apply-

(a)to cases where the legal practitioner, a vendor or a purchaser arranges the sale or purchase and the price, terms and conditions thereof and no commission is paid by the client to an auctioneer’s legal practitioner; and

(b)to cases where the legal practitioner arranges and obtains the loan from a person for whom he acts.

11.Consideration only partly in cash

Where consideration on a lease or purchase is payable partly in cash, and otherwise than cash, a legal practitioner shall still be entitled to remuneration based on the total agreed considerationof the subject of the transaction as contained in the appropriate scale of charges herein

12.Remuneration where lessee’s legal practitioner prepares, completes and registers lease

Where there is no legal practitioner acting for the lessor and the lessee’s legal practitioner, without acting for the lessor, attends to preparing, completing and registering the lease and counterpart, he shall be entitled to the fees as contained in the scale of charges above

13. Protocols on remittance of due remuneration.

The remuneration of a legal practitioner in respect of business or services connected with any sale, purchase, lease, mortgage and other matters of legal documentation and in line with the scale of charges contained herein, shall be made payable in accordance with the following protocols:

Scales contained herein in respect of remuneration for Leases, Tenancies, Purchases, Sale, and Mortgages, there shall be established by every branch of the Nigerian Bar Association a Legal Practitioners Remuneration account with an approved commercial bank within the State or Federal Capital Territory where legal practitioners of the said NBA branch carry on business, into which all monies due and payable to a legal practitioner with respect to business or service provided to a client with regards to property instruments and mortgages, shall be paid in escrow, for the taxation of such charges before being paid out to the legal practitioner.

Scale 5

Scale of charges on other commercial transactions (hourly rates)

Hourly Rates