April 26, 2025

The Federal Government of Nigeria has announced that the proposed Tax Reform Bill, once passed into law, will exempt real estate transactions from Value Added Tax (VAT) — a strategic move aimed at lowering the cost of housing and building materials. This reform seeks to reduce the financial burden on low-income earners while stimulating growth in the construction and real estate sectors. Speaking at a forum organized by the Council of Registered Builders of Nigeria (CORBON) and the Housing Development Advocacy Network (HDAN), Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, detailed the bill’s far-reaching impact. Key Features of the Tax Reform Bill “There will be no VAT on land, real estate sales, or rent,” Oyedele noted, addressing long-standing areas of confusion and controversy in the sector. He also outlined additional relief measures, such as stamp duty exemptions for rents below ₦10 million per month and capital gains tax exemptions on the sale of residential properties. These initiatives are designed to make housing more affordable and tackle persistent tax issues in the real estate space. Supporting Local Production and Growth The bill also proposes targeted incentives for priority sectors, especially the local production of building materials like non-metallic products, to bolster Nigeria’s manufacturing capacity. Oyedele said the reforms will cover land transactions and property registration, including efforts to harmonize property taxes and simplify procedures, ultimately reducing costs and inefficiencies. “The goal is to ease the tax burden on tenants and make housing more accessible. Beyond that, it’s about boosting economic activity in construction and across the broader economy,” he explained. Combating Misinformation and Raising Public Awareness Oyedele encouraged the public to seek reliable information and avoid falling for social media misinformation. “This bill has significant benefits, but some misconceptions are being spread. It’s important that people understand the actual content and intent,” he said. Also weighing in, Minister of Housing and Urban Development Ahmed Dangiwa described the bill as a potential game-changer for construction firms and contractors. Represented by Temitope Gbemi, Director of Public Buildings, Dangiwa said the ministry has aligned its policies with the reform agenda to promote fairness, clarity, and investor confidence in the housing market. Legislative Progress The House of Representatives recently passed four key tax bills, including the Tax Reform Bill, aimed at accelerating economic growth. Initially submitted by the Executive in October 2024, the legislation underwent detailed scrutiny during a clause-by-clause review. The Senate is expected to begin deliberation on the bill following the Eid-El-Fitr and Easter recess — a major step toward its final passage. If enacted, the bill will remove VAT from real estate transactions, provide production incentives, and streamline property taxation, paving the way for a more affordable housing market and stronger economic performance in Nigeria. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.

The International Monetary Fund (IMF) has called on Nigeria to expand its tax revenue base to enhance its fiscal policies. IMF Managing Director, Kristalina Georgieva, made this statement in Washington, D.C., during the 2025 IMF Spring Meetings. She emphasized that Nigeria, like many other African nations, needs to leverage technology and combat tax evasion to improve revenue generation. Georgieva noted that declining oil prices have placed additional strain on the budgets of oil-dependent economies such as Nigeria. Addressing monetary policy, she urged African nations to fight corruption, increase transparency, and implement strategies tailored to their unique economic conditions. “We’re no longer in a time where one can simply replicate the monetary policies of neighboring central banks,” she said. “Each country must assess its own domestic resource mobilization, inflationary pressures, and adopt policies that best suit its economy.” The IMF chief also encouraged the continent to enhance regional trade by removing existing barriers. She pointed to the Association of Southeast Asian Nations (ASEAN) as a model for deepening interregional trade and cooperation. “Infrastructure can sometimes be a hindrance, but the World Bank is actively working to address these challenges to boost growth and trade,” Georgieva added. She highlighted Africa’s vast potential, citing its rich natural resources, minerals, and youthful population. Countries like Nigeria, Egypt, Ghana, and Côte d’Ivoire, she advised, should continue efforts to strengthen their economic buffers. “I believe a more integrated and collaborative Africa has the potential to emerge as a global economic powerhouse,” she concluded. Georgieva also discussed the broader effects of global tariffs, stating that while the direct impact on African nations may be limited, the indirect consequences—especially in a slow-growing global economy—are substantial. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.