𝐂𝐥𝐚𝐫𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧: 𝐓𝐡𝐞 𝐍𝐢𝐠𝐞𝐫𝐢𝐚 𝐓𝐚𝐱 𝐀𝐜𝐭 2025 𝐡𝐚𝐬 𝐂𝐨𝐦𝐦𝐞𝐧𝐜𝐞𝐝 𝐚𝐧𝐝 𝐃𝐨𝐞𝐬 𝐍𝐎𝐓 𝐈𝐦𝐩𝐨𝐬𝐞 𝐚 25% 𝐓𝐚𝐱 𝐨𝐧 𝐁𝐮𝐢𝐥𝐝𝐢𝐧𝐠 𝐌𝐚𝐭𝐞𝐫𝐢𝐚𝐥𝐬 𝐨𝐫 𝐅𝐮𝐧𝐝𝐬 We are aware of a recent video claiming that the new tax laws will commence in 2027 and alleging the imposition of a 25% tax on funds for building... materials and other transactions. Both claims are incorrect. Contrary to the misinformation seeking to create fear, panic and disaffection, the Nigeria Tax Act 2025 has already commenced and does not impose a 25% tax on construction funds, bank balances, or business expenses. Instead, it contains provisions specifically designed to reduce the cost of housing, rent and real estate development. 𝐊𝐞𝐲 𝐏𝐫𝐨𝐯𝐢𝐬𝐢𝐨𝐧𝐬 𝐨𝐟 𝐭𝐡𝐞 𝐍𝐢𝐠𝐞𝐫𝐢𝐚 𝐓𝐚𝐱 𝐀𝐜𝐭, 2025 Relevant provisions to make housing more affordable, encourage real estate development, and support small business property contractors and low-income renters include: 1. 𝑳𝒐𝒘𝒆𝒓 𝑪𝒐𝒔𝒕 𝒐𝒇 𝑩𝒖𝒊𝒍𝒅𝒊𝒏𝒈 𝒂𝒏𝒅 𝑷𝒓𝒐𝒑𝒆𝒓𝒕𝒚 𝑫𝒆𝒗𝒆𝒍𝒐𝒑𝒎𝒆𝒏𝒕 𝘝𝘈𝘛 𝘌𝘹𝘦𝘮𝘱𝘵𝘪𝘰𝘯 𝘰𝘯 𝘓𝘢𝘯𝘥 𝘢𝘯𝘥 𝘉𝘶𝘪𝘭𝘥𝘪𝘯𝘨𝘴 (𝘚.185(𝘭)): Land and buildings are now specifically exempt from Value Added Tax (VAT). 𝘐𝘯𝘱𝘶𝘵 𝘝𝘈𝘛 𝘊𝘳𝘦𝘥𝘪𝘵𝘴 𝘧𝘰𝘳 𝘊𝘰𝘯𝘵𝘳𝘢𝘤𝘵𝘰𝘳𝘴: Where VAT is chargeable on any materials or service, contractors can now recover VAT on their assets and overhead costs, which lowers overall construction costs. 𝘙𝘦𝘥𝘶𝘤𝘦𝘥 𝘞𝘪𝘵𝘩𝘩𝘰𝘭𝘥𝘪𝘯𝘨 𝘛𝘢𝘹 (𝘞𝘏𝘛): A lower 2% WHT rate is applicable on construction contracts, helping to conserve cash flow and reduce financing pressure on developers. 𝘓𝘰𝘢𝘯 𝘐𝘯𝘵𝘦𝘳𝘦𝘴𝘵 𝘋𝘦𝘥𝘶𝘤𝘵𝘪𝘰𝘯 (𝘚.30(2)(𝘪𝘷)): Mortgage interest is tax-deductible for individuals developing an owner-occupied residential house. 𝘋𝘦𝘥𝘶𝘤𝘵𝘪𝘣𝘭𝘦 𝘙𝘦𝘯𝘵𝘢𝘭 𝘌𝘹𝘱𝘦𝘯𝘴𝘦𝘴 (𝘚.20): Property owners who earn rental income can deduct related costs such as repairs, insurance, and agency fees. 2. 𝑫𝒊𝒓𝒆𝒄𝒕 𝑹𝒆𝒍𝒊𝒆𝒇 𝒇𝒐𝒓 𝑹𝒆𝒏𝒕𝒆𝒓𝒔 𝒂𝒏𝒅 𝑻𝒆𝒏𝒂𝒏𝒕𝒔 𝘙𝘦𝘯𝘵 𝘙𝘦𝘭𝘪𝘦𝘧 (𝘚.30(2)(𝘷𝘪)): Individuals can claim relief up to ₦500,000 (20% of annual rent), increasing disposable income for low-income earners. 𝘝𝘈𝘛 𝘌𝘹𝘦𝘮𝘱𝘵𝘪𝘰𝘯 𝘰𝘯 𝘙𝘦𝘯𝘵 (𝘚.185(𝘭)): The VAT exemption on land and buildings also covers rent which is fully exempt from Value Added Tax. 𝘚𝘵𝘢𝘮𝘱 𝘋𝘶𝘵𝘺 𝘙𝘦𝘭𝘪𝘦𝘧 (𝘚.134): Lease agreements with an annual value below ₦10,000,000 (or 10 times the annual minimum wage) are exempt from stamp duty. 3. 𝑰𝒏𝒄𝒆𝒏𝒕𝒊𝒗𝒆𝒔 𝒇𝒐𝒓 𝑰𝒏𝒗𝒆𝒔𝒕𝒐𝒓𝒔 𝒂𝒏𝒅 𝑫𝒆𝒗𝒆𝒍𝒐𝒑𝒆𝒓𝒔 𝘊𝘢𝘱𝘪𝘵𝘢𝘭 𝘎𝘢𝘪𝘯𝘴 𝘛𝘢𝘹 𝘌𝘹𝘦𝘮𝘱𝘵𝘪𝘰𝘯 (𝘚.51(1)): Individuals pay no Capital Gains Tax (CGT) when disposing of a dwelling house or an interest in one. 𝘙𝘌𝘐𝘛 𝘐𝘯𝘤𝘦𝘯𝘵𝘪𝘷𝘦𝘴 (𝘚.162(𝘤)): Real Estate Investment Trusts (REITs) are exempt from Companies Income Tax (CIT) when distributing at least 75% of their dividend or rental income within 12 months after the financial year-end. 𝘗𝘳𝘪𝘰𝘳𝘪𝘵𝘺 𝘚𝘦𝘤𝘵𝘰𝘳 𝘐𝘯𝘤𝘦𝘯𝘵𝘪𝘷𝘦𝘴: Manufacturing of building materials such as iron, steel, and domestic appliances qualifies for specific tax exemption under the economic development incentive scheme for up to 10 years. 𝘙𝘦𝘥𝘶𝘤𝘦𝘥 𝘊𝘰𝘳𝘱𝘰𝘳𝘢𝘵𝘦 𝘛𝘢𝘹 𝘙𝘢𝘵𝘦 (𝘚.56): Scope for the reduction of companies income tax rate for large businesses from 30% to 25%. 4. 𝑷𝒓𝒐𝒕𝒆𝒄𝒕𝒊𝒐𝒏 𝒇𝒐𝒓 𝑾𝒐𝒓𝒌𝒆𝒓𝒔 𝒂𝒏𝒅 𝑺𝒎𝒂𝒍𝒍 𝑩𝒖𝒔𝒊𝒏𝒆𝒔𝒔𝒆𝒔 • 𝘊𝘢𝘱 𝘰𝘯 𝘏𝘰𝘶𝘴𝘪𝘯𝘨 𝘉𝘦𝘯𝘦𝘧𝘪𝘵 𝘛𝘢𝘹 (𝘚.14(6)): The taxable value of employer-provided accommodation is limited to the annual rental value, subject to a maximum of 20% of the employee's annual gross employment income, excluding the rental value. • 𝘚𝘮𝘢𝘭𝘭 𝘊𝘰𝘮𝘱𝘢𝘯𝘺 𝘙𝘦𝘭𝘪𝘦𝘧: Suppliers and contractors who qualify as small companies benefit from 0% Companies Income Tax (CIT), exemption from charging VAT and no deduction of Withholding Tax (WHT) from their invoices and payments. 5. 𝑾𝒉𝒂𝒕 𝒊𝒔 𝑵𝑶𝑻 𝒊𝒏 𝒕𝒉𝒆 𝑻𝒂𝒙 𝑳𝒂𝒘 The Act does not: • Tax money in bank accounts or bank balances. • Tax transfers for buying building materials. • Introduce a 25% construction or business cost tax. • Delay implementation until 2027. 𝐂𝐨𝐧𝐜𝐥𝐮𝐬𝐢𝐨𝐧: 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 manufacturing of building materials, and grant rent reliefs to tenants to enhance their disposable income. 𝐅𝐈𝐍𝐀𝐋 𝐖𝐎𝐑𝐃: “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! — 𝘗𝘳𝘦𝘴𝘪𝘥𝘦𝘯𝘵𝘪𝘢𝘭 𝘍𝘪𝘴𝘤𝘢𝘭 𝘗𝘰𝘭𝘪𝘤𝘺 𝘢𝘯𝘥 𝘛𝘢𝘹 𝘙𝘦𝘧𝘰𝘳𝘮𝘴 𝘊𝘰𝘮𝘮𝘪𝘵𝘵𝘦𝘦show more

Tinubu outsmarted his opponents by picking an expert from the private sector to head this tax reform committee.. His reputation and background of integrity makes him a formidable figure to always dispel all of these baseless rumors..Jagaban Baba Ogbon…Always ten steps ahead of his adversaries 😊😊

His target audience are not on the internet, that’s the problem 😆🤣 very mischievous man

Thank you sir for making this clarification. It’s timely. I had earlier responded this when I saw it. Below is my detailed response: When a politician says, “₦25 million will automatically leave your account if someone pays you ₦100 million,” he’s not educating you. He is banking on our fear. And this is exactly why people need to read the tax documents instead of swallowing campaign‑season prophecies from all these displaced recycled politicians. Nothing in the new tax law says money will “automatically leave your account.” Nothing says 25% will be deducted from every large payment. Nothing says business turnover equals taxable income. This is why Nigerians need to stop relying on political speeches and start relying on actual tax professionals. A tax accountant will tell you the truth in five minutes. 1. ₦100 payment is revenue, not taxable income. 2. Tax applies to profit, not the raw amount someone transfers to you. 3. No law authorizes automatic deductions from your bank account. 4. Implementation requires regulations and systems not threats from this displaced politicians. So before you let politicians scare you into panic, do the grown‑up thing. Read the law, talk to a tax accountant, and stop letting fear replace facts. That’s how you avoid being manipulated every election cycle.

There should be consequence for misinformation. People need to desist from talking about topics they know nothing about.

Very disgusting seeing an elderly statesman like Rotimi Ameachi deliberately goofing himself and public shaming his personality in the public all in the name of campaigning against Mr President. It's obvious that this opposition party candidates in this country are so mentally fuvvked up.

The forged tax law?

All you are saying is deceiving and deceit APC is a team of political criminals and jobbers…..should never be taken serious….Tinubu is a one term president,any how you guys want it….we are in.

@ChibuikeAmaechi your attention is needed here

Hello Prof, Thanks for the continued education on our politicians. However, the tactics is to demarket/suppress government’s gains through misinformation. They know more than you would assume.

Mr @taiwoyedele you should understand Nigerian politicians by now. Very deceptive people who only care about their stomachs

Ameachi knows that he is lying Prof, don't worry too much. But this is a good way to use the opportunity to educate ppl more.

Taxing innocent Nigerians without any meaningful impact. I believe some of you EFCC and ICPC will visit you after Tinubu finish his tenure.

Irọrotimi Amaechi..

Be careful, that will be the only campaign against Tinubu for 2027.

Elder @ChibuikeAmaechi, As a leader, please read, digest and re-inform those you already misinformed. Thank you.

Normally, I would say you should stop wasting time on these jobless people however, it's good to counter them so the public will know the right position of things.

@Oyindamorela_ Rotimi Amaechi really fell off. I used to rate him as an intellect

This “clarification” reads more like an attempt to spin perception than a real explanation. 📉 While the post insists there’s no 25% tax on building materials or bank funds, the sheer length, legal jargon, and repeated emphasis on what’s “not in the law” suggests that the government anticipates public skepticism — and rightly so. Ordinary Nigerians have every reason to question whether these incentives will translate into real, tangible relief. Listing exemptions, deductions, and reliefs is fine on paper, but what about implementation, transparency, and monitoring? Tax laws often favor large companies and developers, while small contractors and everyday citizens get lost in the complexity. The public deserves clear, simplified communication and verifiable impact, not just reassurance packaged in legalese. Until ordinary Nigerians see housing becoming truly more affordable, these claims remain more aspirational than practical. This clarification feels like damage control rather than empowerment.

PBAT Policies are anti Poor masses. 1, the subsidy removal did not affect people in government (Politicians) and rich people, they still move around with their convoys with the money they stole. The one that have companies among them increased the price of their commodities while citizens (poor masses) patronizing them suffering for that. The poor masses especially people working with government minimum wage is 70k (and it has never increased) so they spend the money for transportation not to talk of pay house rent, food stuff and paying children school fees. 2. The exchange rate and devaluation of Naira only benefit people living in diaspora, government people (Politicians) and Fraudsters (Yahoo boys). People (Rich People) importers get their gains by adding money to whatever they import to make their money cos of exchange rate and citizens (Poor masses) are the one suffering for this. 3, taxation, Rich people and Politicians who owns companies did not feel it cos whatever taxes u are taking from their companies or from them will be surely getting back from citizens (Poor Masses) by increasing the prices of whatever they are producing in their companies. So, how is PBAT policies benefit to citizens (poor masses)?

We will never believe this All Propaganda congress.

Just borrowed money from your friend while job hunting. Tinubu and Taiwo Oyedele

Ending this tax law in the interest of Nigerians would not weaken your government — it would strengthen it. Leadership is not about stubbornly defending every policy; it is about listening, reflecting, and correcting course when necessary. A government that prioritizes the well-being of its people over rigid pride earns lasting respect and trust. If this tax law is placing additional hardship on struggling families, small businesses, and young entrepreneurs, then ending it would send a powerful message: that the government hears the cries of its citizens and chooses compassion over revenue at any cost. At a time when many Nigerians are already battling economic pressure, inflation, and uncertainty, policies must ease burdens — not increase them. Repealing or reviewing this tax law would demonstrate responsiveness, humility, and courage. It would show that governance is not about imposing decisions from above, but about serving the people faithfully and responsibly. History remembers leaders who acted in the interest of their citizens, even when it required difficult decisions. Choosing the good of Nigerians today will build political goodwill, strengthen national unity, and restore confidence in leadership. A government that listens to its people does not lose authority — it gains legitimacy.

Sorry which of the tax laws are you explaining? Hope not the forged one?

Thank you sir for this. I hope those cheering Rotimi Amaechi on can now bow their heads in shame with your clarification

@SoprialaMembere oya send this to your oga since na lie una want take campaign

God will continue to uphold you as you continue to educate more Nigerians! We Need people to go to market places and also talk more on this. They must not change the narratives

Thank you @taiwoyedele for your rapid response. I had no doubt this gentleman was lying, simply playing to the gallery to impress an uninformed and naive audience. Don’t let Nigerians fall for such silly shenanigans.

You go defend tire Nigerians die daily due to insecurity but Tax is your concern Are you ok?

Amaechi is a liar. He knew he was lying. It is deliberate. My suggestion is that a govt representative goes to the market to inform the people there that Amaechi lied.

@taiwoyedele, please when are you going to stop the salaye?! Is there no law that can be used for prosecuting fear mongers like this idiot. It’s better they are made to take their words back and tender public apology after paying huge fine.

Thank you very much and may God guide us against these politicians that want to cause disaffection in the society because they are seeking to govern same country they want to destroy .

You're a terrible liar 🤥 before you dream of joining Tinubu and his thieves in apc party, Amaechi know Tinubu and his thieves more than you.... Tinubu is using his alpha Beta to extort tax from poor Nigerians. Tinubu has nothing to offer Nigerians over 3 years in asorock.

Whether 25% or not, your tax law strikes me as extreme...

Mr Taiwo has been resting oo. But olodo Amechi brought him out. Can our politicians be shameful for once?

This is what happens when opposition leaders are bereft of ideas. They resort to lies, misinformation, propaganda and gangsterism. Unfortunately, Nigerians have to listen to their lousy rhetorics.