The federal government has dismissed claims that the Nigeria Tax Act 2025 imposes a 25 per cent levy on building materials, construction funds, or bank balances.
According to Taiwo Oyedele, chairman of the presidential committee on fiscal policy and tax reforms, the Act has already commenced and “does not impose a 25% tax on construction funds, bank balances, or business expenses.”
The statement was issued on Sunday via X, following a viral video of Rotimi Amaechi, former Minister of transportation.
Oyedele said: “Contrary to the misinformation seeking to create fear, panic and disaffection, the Nigeria Tax Act 2025 contains provisions specifically designed to reduce the cost of housing, rent and real estate development.”
He added that land and buildings are exempt from VAT, contractors can recover input VAT, and mortgage interest is tax-deductible for individuals developing owner-occupied houses.
The committee chairman further listed incentives for developers and investors, including Capital Gains Tax exemptions on dwelling houses, REITs’ tax exemptions on dividend distributions, and reduced corporate tax rates for large companies.
He added: “The Act does not tax money in bank accounts or transfers for buying building materials. It does not introduce a 25% construction or business cost tax. Fact not fear, evidence beats emotion.”
