Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, don confirm say Value Added Tax (VAT) don remove from land, buildings and rent under the Nigeria Tax Act 2025.
According to am, the move go help reduce housing cost and support both tenants and property investors.
Oyedele tell journalists say the new law, wey start to dey work from January 2026, clearly exempt people wey dey buy land or completed buildings from paying VAT on those transactions. E add say both residential and commercial rent now free from VAT under the new tax regime.
“Land and buildings dey specifically exempt from VAT under the new tax regime,” Oyedele talk. “This mean say anybody wey dey buy land or completed building no go pay VAT again. The exemption still cover rent.”
According to am, removal of VAT go reduce overall property cost and ease financial pressure for Nigerians wey dey find house to stay or invest for real estate.
E also explain say contractors now fit recover VAT wey dem pay for construction materials and services through input VAT credits, wey go help reduce building expenses.
Oyedele dismiss claims wey dey circulate say the new tax law introduce 25 per cent tax on building materials, bank balances or business expenses. According to am, the Nigeria Tax Act 2025 no introduce any 25 per cent tax as some people dey claim.
Under the law, mortgage interest wey individuals pay for owner-occupied homes go become tax-deductible. Landlords also fit deduct expenses like repairs and insurance before dem calculate tax.
Tenants too fit claim rent relief of up to ₦500,000, capped at 20 per cent of their annual rent, to help make accommodation more affordable.
Oyedele say the overall goal of the tax reforms na to boost real estate investment, support small businesses, reduce housing cost and attract more development into the property sector.
