The Presidential Fiscal Policy and Tax Reforms Committee has dismissed as false a viral video claiming that new tax laws will take effect in 2027 and impose a 25 per cent tax on funds meant for building materials and other transactions.
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In a statement made available to Channels Television on Sunday, the committee clarified that the Nigeria Tax Act 2025 had already commenced and contains no provision imposing a 25 per cent tax on construction funds, bank balances, or business expenses.
According to the committee, the Act instead introduces measures aimed at reducing housing costs, encouraging real estate development, and supporting small businesses and low-income renters.
Key provisions, according to the statement, include a Value Added Tax exemption on land, buildings, and rent, as well as input VAT credits for contractors to reduce construction costs.
“A lower two per cent Withholding Tax rate is applicable on construction contracts, helping to conserve cash flow and reduce financing pressure on developers,” it said.
The committee said renters are entitled to relief of up to ₦500,000, representing 20 per cent of annual rent, while lease agreements below ₦10 million annually are exempt from stamp duty, adding that property owners could deduct expenses such as repairs and insurance from rental income.
The Act further provides incentives for investors, including exemption from Capital Gains Tax on the disposal of dwelling houses and tax incentives for Real Estate Investment Trusts distributing at least 75 per cent of income annually.
“Manufacturing of building materials such as iron, steel, and domestic appliances qualifies for a specific tax exemption under the economic development incentive scheme for up to 10 years,” it said.
According to the committee, small companies benefit from zero per cent companies income tax, exemption from charging VAT, and relief from Withholding Tax deductions.
The committee further urged Nigerians to rely on verified provisions of the law rather than misinformation designed to create fear and panic.
Describing the reforms as evidence-based, it maintained that the new tax framework was intended to make housing more affordable and increase disposable income, not raise rents or impose additional burdens on citizens.
“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, promote real estate development, incentivise the manufacturing of building materials, and grant rent relief to tenants to enhance their disposable income.
“Fact, not fear, evidence beats emotion. If anyone makes an alarming claim or tries to misinform you, ask them, ‘Where is it in the law?’
“With the new tax laws, housing should become more affordable, and rent should go down, NOT up!” it added.
In June, 2025, President Bola Tinubu assented to four tax reform bills recently passed by the National Assembly.
The four bills: the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill were passed by the National Assembly after extensive consultations with various interest groups and stakeholders.
According to the presidency, the new tax laws will significantly transform tax administration in the country, leading to increased revenue generation, improved business environment, and a boost in domestic and foreign investments.
