Presidential Committee Refutes 25 % Building Materials Tax Claim Under Nigeria Tax Act
FG Dismisses Viral Claims of 25 % Tax on Construction Materials
The Presidential Fiscal Policy and Tax Reforms Committee has formally rejected claims circulating on social media that the Nigeria Tax Act 2025 imposes a twenty-five per cent tax on building materials, construction funds or bank funds. In an official statement on Sunday, the committee clarified that the allegations which originated from a viral video by former Minister of Transportation Rotimi Amaechi are inaccurate and not reflected in the enacted tax law.
Clarification Comes Amid Widespread Misinformation
The committee, led by Chairman Taiwo Oyedele, issued the denial following public confusion sparked by online claims suggesting the law would automatically deduct 25 per cent from accounts used to purchase construction materials. Those assertions implied that such charges would be passed on to consumers and developers, potentially inflating housing costs.
In its response, the committee emphasised that the Nigeria Tax Act 2025, which has already commenced, does not contain any provision imposing a flat 25 per cent tax on building materials, bank balances, or related transactions. The statement labelled the viral claims as “false and misleading” and cautioned that they could generate undue stress among investors, market participants and the public.
Government Position: Focus on Relief and Growth
Officials reiterated that the tax reforms introduced under the act are structured to reduce the overall cost of housing, stimulate real estate development, and provide targeted relief not to create new financial burdens on developers or property buyers. The broader fiscal policy framework is aimed at simplifying tax administration, expanding the tax base and accelerating growth in priority sectors, including housing and construction.
Industry stakeholders, including property developers and financial institutions, had expressed concern after the viral video raised questions about potential cost implications for building projects. The government’s clarification is intended to reassure markets and reinforce confidence in the ongoing tax reform process.
Addressing Public Misinterpretation
The disputed claim stemmed from a public video in which Mr Amaechi alleged that any payment for building materials would automatically result in a 25 per cent deduction, meaning a N100 million payment would see N25 million taken as tax. According to the committee, no such mechanism exists in the law, and the Tax Act has already been implemented without this provision.
The denial highlights challenges governments face when complex fiscal policies are misrepresented online. Officials emphasised the need for citizens, businesses and media to rely on verified sections of the Tax Act rather than social media interpretations.
What the Nigeria Tax Act 2025 Aims To Achieve
Although not directly detailing all provisions, the committee’s clarification reaffirms that the thrust of the new tax laws is economic incentive and relief:
Measures designed to housing costs and rental burdens.
Reforms intended to simplify tax administration across the real estate and construction sectors.
Targeted fiscal incentives to attract investment and support small, medium and large developers.
These structural reforms are part of a broader fiscal policy initiative undertaken by the Federal Government to boost investment sentiment and strengthen Nigeria’s real estate market.
Misinformation Countered with Official Clarification
The Presidential Fiscal Policy and Tax Reforms Committee’s unequivocal denial of a 25 per cent building materials tax represents a decisive rebuttal of a widely circulated misinformation claim. By reaffirming the actual provisions of the Nigeria Tax Act 2025, the government has sought to restore clarity and maintain confidence particularly among investors, developers and taxpayers in the nation’s ongoing tax reform agenda.
For professionals monitoring fiscal policy shifts and their effects on markets, the clarification underscores the importance of distinguishing viral narratives from statutory content when evaluating regulatory impacts on the economy.
