The Nigeria Revenue Service (NRS) has issued a firm clarification regarding widespread misinformation about the Nigeria Tax Act 2025, urging the public to disregard viral claims that the new law imposes a 25 percent tax on building materials and construction funds.
In a public notice signed by the Service on Monday, the NRS described the rumours circulating in a recent video as completely false.
The video, which features Rotimi Amaechi, had claimed that the Act would only take effect in 2027 and would introduce a heavy levy on the construction sector.
Contrary to the misinformation, the NRS confirmed that the Nigeria Tax Act 2025 is already in effect and contains no provision for a 25 percent tax on building materials, construction costs, housing funds, or related transactions.
“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,” the statement read.
The Service highlighted that far from imposing new burdens, the Act introduces several targeted reliefs and incentives aimed at improving affordability. Key provisions include Value-Added Tax (VAT) exemptions on the sale and lease of eligible residential properties, as well as VAT relief on specific building and construction inputs under defined conditions.
To boost homeownership, the Act provides a mortgage interest relief for owner-occupied homes, allowing deductions of up to N8 million. Furthermore, it offers tax incentives for developers and institutional investors, including exemptions for qualifying Real Estate Investment Trusts (REITs) and other housing-related financing structures.
“The Act does not impose any additional tax burden such as a ‘25% tax’ on building materials or construction funds,” the NRS emphasized. “It also does not introduce restrictions on how individuals may finance housing projects or transfer funds for construction purposes.”
The NRS urged members of the public to rely only on verified information issued through official government channels and to disregard the misinformation, which it said was aimed at causing unnecessary panic. The Service reaffirmed its commitment to transparency and to implementing the Act in a manner that strengthens the economy and protects the public interest.
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