Nigeria Revenue Service Debunks Viral 25% Building Materials Tax Claim, Confirms Nigeria Tax Act 2025 Is Already in Force
By Passman Akpos
Abuja — The Nigeria Revenue Service (NRS) has issued a strong clarification dismissing viral claims that the Nigeria Tax Act 2025 will only commence in 2027 and that it introduces a 25 percent tax on building materials and construction funds.
In a press release on Monday, the agency described the circulating video as misleading and false, firmly stating that the Nigeria Tax Act 2025 is already in effect and does not impose any 25 percent tax on building materials, housing projects, construction inputs, or related financial transactions.
Act Designed to Reduce Housing Costs
According to the NRS, the Nigeria Tax Act 2025 was specifically crafted to make housing more affordable, stimulate investment in real estate and construction, and drive broader economic participation.
The Service emphasized that rather than increasing costs, the Act introduces targeted tax reliefs and incentives aimed at strengthening the housing value chain across the country.Key Housing and Construction IncentivesThe NRS highlighted several major provisions of the Act that directly support property
development and homeownership:
VAT exemptions on the sale and lease of eligible residential properties, including rent.VAT exemptions for eligible building and construction materials under specified conditions.
Mortgage interest relief for owner-occupied homes, allowing deductions of up to ₦8,000,000, improving access to homeownership.
Tax incentives for developers and institutional investors, including exemptions for qualifying Real Estate Investment Trusts (REITs) and other housing-related financing structures.Withholding tax and VAT reliefs aimed at lowering compliance burdens and promoting sector-wide investment.
No 25% Tax, No Restrictions on Construction Funds
The agency made it clear that the Act does not introduce any new tax burden such as a “25% tax” on building materials or construction funds. It also does not restrict how individuals finance housing projects or transfer funds for construction purposes.
Public Urged to Ignore MisinformationThe NRS advised Nigerians to rely solely on verified information issued through official government channels and disregard unverified social media content.
Reaffirming its commitment to transparency and economic growth, the Service stated that the implementation of the Nigeria Tax Act 2025 is aimed at strengthening the economy, encouraging investment, and improving housing affordability nationwide.
The statement was officially signed by the Nigeria Revenue Service (NRS).
