The Nigeria Revenue Service has dismissed viral claims that the Nigeria Tax Act 2025 imposes a 25% tax on building materials and construction funds, clarifying that the legislation instead provides VAT exemptions, mortgage interest relief, and tax incentives to reduce housing costs and encourage real estate investment.
The Nigeria Revenue Service has clarified, on 17 February 2026, that the Nigeria Tax Act 2025 is already in effect and does not impose a 25% tax on building materials, construction funds, or related transactions, contrary to false claims circulating in a recent video.
Contrary to the misinformation being circulated, the Nigeria Tax Act 2025 was designed to reduce housing costs, encourage investment in the real estate and construction sectors, and support broader economic participation. The Act includes targeted provisions to improve affordability and stimulate development across the housing value chain.
Key provisions supporting housing and construction
The Nigeria Tax Act 2025 introduces several reliefs and incentives, including:
- VAT exemptions on the sale and lease of eligible residential properties, including rent.
- VAT exemptions for the supply of eligible building and construction inputs under specified conditions.
- Mortgage interest relief for owner-occupied homes, allowing mortgage interest deductions of up to NGN 8,000,000.
- Tax incentives for developers and institutional investors, including exemptions for qualifying Real Estate Investment Trusts (REITs), and other reliefs for eligible housing-related financing structures.
- Withholding tax and VAT reliefs are designed to lower compliance burdens and promote investment in the sector.
The Act does not impose any additional tax burden, such as a “25% tax” on building materials or construction funds. It also does not impose restrictions on how individuals may finance housing projects or transfer funds for construction.
The NRS urges the public to disregard misinformation and rely only on verified information from official government channels.
