Tax act 2025 already live, boosts housing without 25% levy on materials, NRS clarifies
Nigeria Revenue Service NRS
Abdullateef Fowewe
The Nigeria Revenue Service (NRS) on Monday moved to quash a viral video spreading false claims about the Nigeria Tax Act 2025, affirming that the law is already in effect and includes no 25% tax on building materials or construction funds.
In an official statement, the NRS labeled the circulating misinformation “false,” clarifying that “the Nigeria Tax Act 2025 is already in effect, and it does not introduce any 25% tax on building materials, construction costs, housing funds, or related transactions.”
The hoax video had alleged the Act would only kick in by 2027 and slap a hefty 25% tax on key housing inputs, sparking widespread alarm among builders, developers, and homebuyers. Instead, the NRS emphasised the Act’s pro-housing mission: “The Nigeria Tax Act 2025 was designed to reduce the cost of housing, encourage investment in the real estate and construction sectors, and support broader economic participation.”
Key incentives highlighted include VAT exemptions on sales, leases, and rents of eligible residential properties; exemptions for certain building inputs; mortgage interest deductions up to N8,000,000 for owner-occupied homes; and reliefs for Real Estate Investment Trusts (REITS) and housing financing.
“No new tax burden such as a ‘25% tax’ on building materials or construction funds” exists, the statement added, nor any curbs on funding personal housing projects.
The NRS urged vigilance,“Members of the public should disregard misinformation and rely only on verified information issued through official government channels.”
The agency reaffirmed its commitment to “transparency, supporting investment,” and advancing housing affordability.
