Nigeria Tax Act 2025: Clarifying Housing Tax Misconceptions

The Nigeria Tax Act 2025 has recently faced controversy due to claims of a 25% tax on construction materials, which were labeled as false by the Nigeria Revenue Service (NRS). On February 16, 2026, the NRS clarified that the Act, which commenced earlier, is designed to alleviate financial pressures in the housing sector rather than increase them.

This clarification followed a campaign video by former Rivers State Governor and ex-Minister of Transport Rotimi Amaechi, who inaccurately suggested that the Act would impose additional tax burdens starting in 2027. The NRS emphasized that the Act aims to lower housing costs and includes incentives such as VAT exemptions on significant provisions related to residential properties.

Other benefits include mortgage interest relief, reduced withholding tax rates, and exemptions from capital gains tax for individuals disposing of residential properties. The NRS urged Nigerians to verify information through official government channels to avoid panic and misinformation.