Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has dismissed claims attributed to Rotimi Amaechi alleging that the Nigeria Tax Act imposes a 25 per cent tax on building materials, construction funds and bank balances. Oyedele described the assertions as misleading, stressing that the Act has already commenced and contains no such provision.
He clarified that the new tax law does not introduce any 25 per cent levy on construction-related transactions, personal bank deposits or business expenses, nor does it postpone implementation until 2027 as claimed. According to him, interpretations suggesting otherwise misrepresent the content and intent of the legislation.
Oyedele explained that the Act instead provides measures aimed at reducing housing costs and stimulating real estate development, including VAT exemption on land, buildings and rent, input VAT credits for contractors, and a reduced 2 per cent Withholding Tax on construction contracts. The law also allows mortgage interest deductions for owner-occupiers and expense deductions for landlords earning rental income.
He further noted that renters can claim relief of up to ₦500,000, while lease agreements below ₦10 million annually are exempt from stamp duty. Emphasising transparency, Oyedele urged Nigerians to verify claims by consulting the law itself, maintaining that the reforms are designed to make housing more affordable rather than increase financial burdens.