The Presidential Fiscal Policy and Tax Reforms Committee has rejected a viral social media claim that Nigeria’s new tax laws impose a 25 per cent levy on funds for building materials and other transactions, calling the video entirely false.
In a statement to Channels Television, the committee clarified that the Nigeria Tax Act 2025, which commenced in June following presidential assent, contains no such provision. The Act, it explained, is designed to lower housing costs and stimulate economic activity through targeted reliefs and incentives.
Key measures include a Value Added Tax (VAT) exemption on land, buildings, and rent. Contractors gain input VAT credits to cut construction expenses, while a reduced two per cent Withholding Tax applies to construction contracts to ease developer cash flow. Renters receive relief of up to ₦500,000 annually—representing 20 per cent of rent—and lease agreements under ₦10 million are exempt from stamp duty. Property owners may deduct repair and insurance costs from rental income.
The framework also offers investor incentives: exemption from Capital Gains Tax on the sale of primary residences, tax benefits for Real Estate Investment Trusts distributing at least 75 per cent of income, and a 10-year tax holiday for manufacturing building materials like iron and steel under an economic development scheme. Small businesses are granted zero per cent companies income tax, VAT charging exemptions, and relief from Withholding Tax deductions.
The committee urged the public to rely on the law’s text rather than misinformation, stating: “Claims suggesting a new tax on building materials or bank funds are false and misrepresent the law. Rather, the new tax law specifically introduced measures to make housing more affordable… Fact, not fear, evidence beats emotion.”
These reforms are part of four tax bills passed by the National Assembly after extensive consultations: the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board (Establishment) Bill. The presidency has said the overarching goal is to modernise tax administration, boost revenue, improve the business climate, and attract domestic and foreign investment.
The committee’s rebuttal underscores an ongoing effort to manage public perception as Nigeria implements a major overhaul of its fiscal legislation, framing the changes as pro-growth and pro-affordability rather than a burden on citizens.
Comments are closed for this story.