The federal government has announced plans to exempt real estate transactions and construction services from Value Added Tax (VAT) under the new Tax Reform Bill, a move set to make housing more affordable and stimulate growth in Nigeria’s construction sector.
The initiative was revealed during a policy forum organized by the Council of Registered Builders of Nigeria (CORBON) and the Housing Development Advocacy Network (HDAN).
Major Relief for Homebuyers and Developers
Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms Committee, explained that the bill would eliminate VAT charges on:
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Land sales
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Real estate transactions
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Rent payments
“These have historically been areas of dispute,” Oyedele said.
He emphasized that removing VAT from these transactions would reduce the cost of building and renting homes, easing the burden on everyday Nigerians — particularly low- and middle-income earners.
Other Key Tax Benefits Under the Reform Bill
The Tax Reform Bill is not stopping at VAT exemptions. According to Oyedele, it will also introduce:
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Stamp Duty Exemptions for rent agreements below N10 million per year
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Capital Gains Tax Relief on the sale of residential properties
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Incentives for industries producing building materials, especially non-metallic products, to encourage local manufacturing and cut construction costs.
“These changes are designed to make housing more accessible, boost local industries, and unlock broader economic growth,” he added.
Making Land Ownership Easier
In addition to housing reforms, the bill will also address land transaction processes:
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Streamlining property titling
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Harmonizing property-related taxes across the country
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Reducing bureaucratic bottlenecks and costs in land acquisition
Oyedele stressed that the reforms would improve transparency and promote investment confidence in Nigeria’s real estate market.
Government Pledges Full Support
Ahmed Dangiwa, Minister of Housing and Urban Development, praised the Tax Reform Bill, describing it as a “game-changer” for Nigeria’s housing ambitions.
Speaking through Temitope Gbemi, Director of Public Building at the Ministry, Dangiwa noted that the ministry is aligning its policies with the reforms to ensure clarity, fairness, and strong protection for investors.
“This bill will not only support our national housing agenda but will also encourage private-sector participation, which is vital for meeting Nigeria’s housing needs,” Dangiwa said.
A Call for Public Awareness
Oyedele urged Nigerians to seek accurate information about the Tax Reform Bill, cautioning against misinformation circulating on social media.
“This bill holds many benefits, but some misconceptions are spreading. It’s important that citizens understand the true impact,” he said.
With the proposed reforms, Nigeria’s real estate and construction industries could soon experience a major boost, making it easier for millions of citizens to own homes and for businesses to thrive in a more supportive tax environment.
