Nigeria’s real estate and construction sectors are poised for significant relief under a proposed Tax Reform Bill aimed at improving housing affordability and boosting investment. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, announced that the bill would exempt key real estate transactions from Value Added Tax (VAT), offering a major reprieve for developers, homeowners, and tenants.
Speaking at the Building and Construction Industry Forum—jointly organized by the Council of Registered Builders of Nigeria (CORBON) and the Housing Development Advocacy Network (HDAN)—Oyedele stated that the reforms are designed with inclusivity in mind, particularly to support low- and middle-income Nigerians.
“There will be no VAT on land purchases, real estate sales, or rent,” Oyedele affirmed. “These areas have long been a source of confusion, but this bill provides much-needed clarity and relief.”
The removal of VAT from these critical components of the housing value chain is expected to lower the overall cost of construction and property acquisition. The bill also proposes eliminating stamp duties on rental agreements valued under ₦10 million monthly and waiving capital gains tax on the sale of residential properties, especially primary residences.
In addition, Oyedele highlighted fiscal incentives targeted at local manufacturers of building materials—particularly in the non-metallic segment—as a strategy to reduce production costs and foster industrial growth within the sector.
“Our objective is to improve housing affordability and ease the tax burden on everyday Nigerians,” he said. “These reforms go beyond technical tax adjustments; they form part of a comprehensive plan to drive economic development and elevate living standards.”
The bill also addresses broader land administration issues, including streamlining the property titling process and harmonizing land-related taxes across federal, state, and local authorities—key reforms long demanded by stakeholders in the built environment.
Oyedele urged Nigerians to rely on verified sources for information about the bill, cautioning against misinformation circulating on social media. “There’s a lot of misunderstanding about this bill. It’s not about imposing new taxes—it’s about creating a fairer, more efficient system,” he concluded.
