May 5, 2025

In a statement released on Workers’ Day, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, emphasized that the proposed tax reform bills are designed to support Nigerian workers and small businesses. Sharing his message via his official X account, Oyedele called for collective support of the reforms, noting they aim to improve the net income and overall welfare of workers across the country. He highlighted several key provisions in the bills, including lower taxes and increased exemptions that directly benefit both employees and small business owners. Highlights of the Proposed Tax Reforms: Oyedele urged organized labour, including the NLC and TUC, to back the reforms, assuring that the bills are in the best interest of their members and all working Nigerians. “These reforms are not just about taxes—they’re about fairness, relief, and creating opportunities for the people,” he said. 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.

If you own property in Nigeria or aspire to you should be aware that property ownership comes with certain tax obligations. Whether you’re building, renting out, or selling real estate, there are taxes to be paid to various levels of government. In some cases, you’re taxed simply because your property benefits from public infrastructure. Property taxes can vary widely across Nigeria. Some are nationally applicable, while others are imposed at the state or local government level. Either way, they represent a cost to the property owner one that may be passed on to tenants or buyers. This post will walk you through the key facts about property taxation in Nigeria and what you need to know to stay compliant. Fact 1: Nigeria Has a Range of Property Taxes Most property taxes in Nigeria are administered by state governments, but local councils also impose levies on residential and commercial buildings. Here are some common taxes and fees: Fact 2: Tax Rates Depend on Multiple Factors Several factors influence how much tax is charged on a property: Fact 3: Commercial Properties Are Taxed Higher In the Federal Capital Territory (FCT), residential properties are taxed at 0.4% of their value, while commercial properties are taxed at 0.6%. Lagos applies a 0.456% rate for all property types, but owner-occupied residential properties enjoy a 40% discount—benefits not extended to commercial or industrial properties. Fact 4: Taxes Can Be Flat Fees or Percentage-Based Some levies are fixed in absolute terms. For example, a local government might impose a ₦500 per square meter development levy annually. In parts of Lagos, development levies range between ₦100,000 and ₦200,000. Other taxes are based on property value or transaction profit, such as: Fact 5: You Have Multiple Payment Options Property taxes can be paid through several channels: Navigating Nigeria’s property tax system can be complex, especially since rules and rates vary from one state to another. But understanding the basics will help you meet your legal obligations and avoid penalties. Whether you’re a landlord, a property investor, or just planning to enter the market, being informed is your first step toward responsible property ownership. 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.