Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has said land, buildings and rent are now fully exempted from Value Added Tax (VAT) under the Nigeria Tax Act 2025.

He explained that the law, already in force, is aimed at reducing housing costs, encouraging investment and easing the burden on tenants and small businesses. According to him, buyers of land and completed buildings will no longer pay VAT, while both residential and commercial rent are now VAT-free.

Oyedele also said contractors can recover VAT on construction inputs, helping to reduce project costs.

He dismissed claims that the law introduces a 25 per cent tax on construction funds or bank balances, describing them as false.

“Contrary to the misinformation seeking to create fear, panic and disaffection, the Nigeria Tax Act 2025 has already commenced and does not impose a 25 per cent tax on construction funds, bank balances, or business expenses,” he said.

He added that the law provides rent relief of up to N500,000, exempts leases below N10 million from stamp duty, removes Capital Gains Tax on residential property sales, and offers tax incentives to real estate investors and building material manufacturers.

Oyedele urged Nigerians to rely on verified information, saying the reforms are meant to make housing more affordable and stimulate growth in the property sector.