The Nigeria Revenue Service has dismissed claims that the Nigeria Tax Act 2025 introduces a 25 percent tax on building materials, construction funds, or related housing transactions.
In a press release dated February 16, 2026, the agency clarified that the Act has already commenced and does not impose any new 25 percent levy on building materials, housing funds, or construction costs. The Service described reports circulating in a recent video as misleading and false.
According to the statement, the Nigeria Tax Act 2025 does not defer its implementation to 2027 as alleged in the viral claims. Rather, the law is currently in force and contains no provision introducing a 25 percent tax on construction inputs or housing related transactions.
The agency explained that the Act was designed to reduce the cost of housing, attract investment into the real estate and construction sectors, and support wider economic participation. It said the legislation includes targeted measures to improve affordability and stimulate growth across the housing value chain.
Among the key provisions highlighted are value added tax exemptions on the sale and lease of eligible residential properties, including rent. The Act also provides VAT exemptions on the supply of qualifying building and construction inputs under specified conditions.
The Service further noted that the law introduces mortgage interest relief for owner occupied homes. Homeowners may claim mortgage interest deductions of up to ₦8,000,000, a move aimed at improving access to homeownership.
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In addition, the Act offers tax incentives to developers and institutional investors. These include exemptions for qualifying Real Estate Investment Trusts and other housing related financing structures. Withholding tax and VAT relief measures are also included to reduce compliance burdens and encourage investment in the sector.
The Nigeria Revenue Service stressed that the Act does not introduce any additional tax burden such as a 25 percent charge on building materials or construction funds. It also does not restrict how individuals finance housing projects or transfer funds for construction purposes.
The agency urged members of the public to disregard misinformation and rely only on verified information issued through official government channels. It reaffirmed its commitment to implementing the Nigeria Tax Act 2025 in a way that strengthens the economy, supports housing affordability, and protects the public interest.
