A viral video recently sparked widespread concern, claiming the Nigeria Tax Act 2025 imposes a 25% tax on building materials, construction funds, and related bank transactions.
Viral Claim Sparks Fear
Former Minister of Transportation Rotimi Amaechi warned that developers and landlords would face heavy charges.
He claimed that paying 100 million Naira for materials could automatically cost 25 million extra.
Moreover, he suggested landlords would pass the costs onto tenants, increasing rents unfairly.
Committee Clarifies Facts
In response, the Presidential Fiscal Policy and Tax Reforms Committee acted quickly to correct the record.
Chairman Taiwo Oyedele emphasised that the Act, effective January 1, 2026, does not include any such levy.
He added that the law aims to ease costs, support real estate development, and help tenants and small contractors.
Furthermore, the committee labelled the viral claims misleading, stressing that false reports could unsettle investors, developers, and the public.
Read Also: SERAP Sues CBN Alleging ₦3 Trillion Discrepancy
Officials warned that misinformation spreads unnecessary fear and confusion.
Tax Relief Measures
In reality, the Nigeria Tax Act 2025 offers several financial relief measures.
For example, it exempts land and buildings from VAT, which reduces acquisition costs.
In addition, contractors can reclaim input VAT on eligible materials, assets, and overheads.
The law also reduces Withholding Tax on construction contracts to 2%, easing developers’ cash flow.
Meanwhile, homeowners can deduct mortgage interest for tax purposes, and landlords can deduct repair, insurance, and agency expenses.
Renters benefit from relief up to ₦500,000, VAT exemptions on residential rent, and stamp duty relief on qualifying leases.
Finally, the government signed the Act and related reforms (NTAA, NRSEA, JRBEA) into law on June 26, 2025, creating a new fiscal framework.
Overall, the law encourages property investment, simplifies tax administration, and reduces housing costs.
What began as panic online has now turned into clarity: the Act actively supports growth, not extra taxation.
