No More VAT on Rent, Land, or Property Sales Under Proposed Tax Bill
Nigeria’s real estate and construction industries is set to experience major reliefs under the proposed Tax Reform Bill designed to make housing more affordable and encourage investment. According to Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, the bill will exempt key real estate transactions from Value Added Tax (VAT), aiming to ease the financial burden on developers, homeowners, and tenants.
Speaking at the Building and Construction Industry Forum, co-organized by the Council of Registered Builders of Nigeria (CORBON) and the Housing Development Advocacy Network (HDAN), Oyedele emphasized that the reforms are crafted with a focus on economic inclusivity—particularly to support low- and middle-income Nigerians.
“There will be no VAT on land, the sale of real estate, or rental payments,” Oyedele stated. “These are areas that have sparked debate in the past, but this bill brings clarity and relief.”
He explained that by eliminating VAT from these critical aspects of the housing value chain, the overall cost of housing construction and acquisition will be reduced. The reforms also remove stamp duty charges on rental agreements valued below ₦10 million per month and waive capital gains tax on the sale of residential properties—especially primary homes.
Oyedele further noted that the bill encourages local production of building materials by offering fiscal incentives to manufacturers, particularly those in the non-metallic products segment. These provisions are expected to reduce the cost of inputs and drive industrial growth within the sector.
“Our goal is to enhance housing affordability and reduce the tax load on everyday Nigerians,” he said. “These reforms are not just technical adjustments—they are part of a broader strategy to stimulate economic activity and improve quality of life.”
In addition to transaction exemptions, the bill includes reforms targeting land administration. These include efforts to streamline property titling processes and harmonize overlapping land-related taxes across federal, state, and local governments—measures long called for by stakeholders in the built environment.
Oyedele urged the public to seek accurate information about the reform bill, warning against reliance on misleading social media posts or sensational headlines. “This bill is being misunderstood in some quarters. It’s not about increasing tax burdens—it’s about promoting fairness and efficiency,” he emphasized.
Adding to the discourse, Minister of Housing and Urban Development, Arc. Ahmed Dangiwa—represented by Temitope Gbemi, Director of Public Buildings—expressed the ministry’s full support for the reforms. He stated that housing policy has been aligned with the tax agenda to ensure coherence and investor confidence.
“The tax bill provides comprehensive relief for construction companies and developers,” Gbemi said. “We’re working hand-in-hand with tax authorities to create a clear, predictable investment environment.”
CORBON Chairman, Samson Opaluwah, highlighted long-standing challenges in the sector, such as limited access to financing and the burden of multiple taxation. He expressed optimism that the new bill would address these structural issues, helping the council and the broader construction sector to unlock greater potential.
Festus Adebayo, Executive Director of HDAN, welcomed the VAT exemptions and pushed for further incentives within the bill to encourage developers to prioritize affordable housing. He emphasized the importance of using tax policy as a lever to drive inclusive housing delivery for underserved populations.
As Nigeria grapples with a massive housing deficit, the Tax Reform Bill offers hope for a more supportive fiscal environment—one that could enable the development of low-cost homes, attract private sector capital, and accelerate the country’s broader economic recovery.