The Federal Government of Nigeria has reaffirmed that the proposed Tax Reforms Bill will make housing more affordable and available to millions of Nigerians by easing tax burdens on the construction and real estate sectors. This major development holds significant implications for real estate investments in Nigeria, including key markets like Lagos, Abuja, Port Harcourt, Enugu, Owerri, Ibadan, Uyo, and Asaba, and will ripple across the real estate news and proptech news landscape globally.

At the Building and Construction Industry Forum in Abuja, 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, outlined the bill’s potential impact and addressed widespread misconceptions about it.

VAT Exemptions to Reduce Housing Costs

Oyedele highlighted that one of the key provisions of the Tax Reforms Bill is the exemption of Value Added Tax (VAT) on real estate transactions.

“There will be no VAT on lands, sale of real estate, and rent is exempted from VAT. Some of these were areas of controversies in the past,” he clarified.

For those following real estate investments Nigeria and real estate investments Lagos, this could lead to a significant reduction in building material costs and final housing prices. This development is equally important for international investors exploring real estate investments Dubai, real estate investments USA, real estate investments UK, and real estate investments Canada, who often compare returns across emerging markets.

Targeting Relief for Low-Income Earners

Contrary to some misconceptions circulated on social media, Oyedele emphasized that the bill is designed to favor low-income earners.

“The bill is designed in a way to favour low income earners contrary to what is being claimed. It will also ease their burden.”

Additionally, rents below ₦10 million per annum will be exempt from stamp duties, and capital gains tax will not apply to the sale of dwelling houses. This offers strong incentives for those involved in affordable housing projects, a sector crucial to expanding real estate investments Abuja, real estate investments Port Harcourt, and other fast-growing Nigerian cities.

Boosting Local Production of Building Materials

Another major benefit of the bill is the promotion of local production of building materials. Non-metallic products essential to construction will be classified as priority sectors eligible for government incentives.
This move is set to enhance supply chains, lower project costs, and ultimately fuel the construction boom, impacting real estate magazine headlines and proptech news innovations.

Land Titling and Property Tax Harmonization

The Tax Reforms Bill also addresses longstanding challenges around land transactions, promising reforms in titling processes and the harmonization of property taxes across Nigeria. These reforms are expected to improve the transparency and efficiency of land acquisition—key factors influencing real estate investments Nigeria, particularly in cities like Enugu, Owerri, Ibadan, Uyo, and Asaba.

Oyedele reiterated the broader objective:

“The essence is to make life better for everybody and improve the economic activities in the building and construction sectors, and by extension, the whole of the economy.”

Government Alignment on Housing Policy

Speaking at the event, Minister of Housing and Urban Development, Ahmed Dangiwa (represented by Temitope Gbemi, Director of Public Building), confirmed that the ministry has fully aligned its housing policies with the fiscal reforms to ensure clarity, equity, and investor protection for both local and foreign stakeholders.

This alignment is expected to enhance confidence among investors seeking real estate investments USA, real estate investments UK, and real estate investments Canada, and will make Nigerian property markets even more attractive on the global stage.

Industry Stakeholders Welcome the Reforms

Stakeholders across the building sector have expressed optimism about the bill’s provisions.
CORBON Chairman Samson Opaluwah pointed to poor access to finance and multiple taxation as major barriers to the industry’s growth, expressing hope that the tax reforms would finally address these challenges.

Similarly, HDAN Executive Director Festus Adebayo applauded the VAT exemptions, advocating for further incentives to encourage developers to invest in affordable housing projects for low-income earners—a move that would support the ongoing expansion of real estate investments Lagos and real estate investments Abuja.

Key Takeaways

• Nigeria’s Tax Reforms Bill seeks to make housing more affordable by exempting VAT on land, rent, and real estate sales.

• Low-income earners and affordable housing developers stand to benefit significantly from the reforms.

• Building material producers are set to receive priority sector incentives, lowering construction costs.

• Land titling and property tax harmonization are critical parts of the proposed reforms, aiming to boost efficiency and transparency.

• Government ministries and stakeholders across the building sector strongly support the reforms.

• These changes are poised to enhance both local and international real estate investments Nigeria, bolstering the country’s competitiveness against property markets in Dubai, the USA, the UK, and Canada.