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No More VAT On Land, Buildings, And Rent, Oyedele Confirms
Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, has confirmed that land, buildings, and rent are fully exempt from Value Added Tax (VAT) under the Nigeria Tax Act 2025.
These reforms, which took effect in January 2026, are designed to lower property transaction costs, stimulate real estate investment, and provide relief to tenants.
Oyedele explained that the new law, which has already commenced, was designed to reduce the cost of housing, encourage investment in real estate and provide relief for tenants and small businesses across the country.
According to him, land and buildings are specifically exempt from VAT under the new tax regime. This means that individuals buying land or completed buildings will no longer pay VAT on such transactions. He added that the exemption also applies to rent, making both residential and commercial rent completely free from VAT.
He said the removal of VAT on land, buildings and rent is expected to lower the overall cost of property transactions and ease the financial burden on Nigerians seeking accommodation.
Oyedele also explained that where VAT is charged on certain construction materials or services, contractors can now recover the VAT paid on their assets and overhead costs. He said this input VAT credit will reduce construction expenses and make it easier for developers to manage their projects.
He dismissed claims circulating in some quarters that the Nigeria Tax Act 2025 introduces a 25 per cent tax on construction funds, bank balances or business expenses. He described such claims as false and misleading.
Writing on his WhatsApp platform on Sunday, Oyedele said, “Contrary to the misinformation seeking to create fear, panic and disaffection, the Nigeria Tax Act 2025 has already commenced and does not impose a 25 per cent tax on construction funds, bank balances, or business expenses.”
He said the law does not tax money kept in bank accounts, does not impose any levy on transfers used to buy building materials and does not introduce any 25 per cent construction or business cost tax. He also clarified that there is no postponement of implementation until 2027, as being alleged in some messages circulating online.
According to him, the focus of the new tax law is to make housing more affordable and stimulate growth in the property sector.
On construction contracts, Oyedele disclosed that the Withholding Tax rate has been reduced to two per cent. He said the lower rate will help developers retain more cash during project execution and reduce their dependence on expensive borrowing.
In addition, he said mortgage interest paid by individuals who are building their own homes can now be deducted for tax purposes. “Mortgage interest is tax-deductible for individuals developing an owner-occupied residential house,” he said. He explained that this provision will encourage more Nigerians to take steps towards owning their homes.
For landlords, the law allows property owners earning rental income to deduct related expenses such as repairs, insurance and agency fees before calculating their tax liability. Oyedele said this will reduce the tax burden on property owners and may encourage better maintenance of buildings.
He also addressed the concerns of tenants, noting that the law provides direct rent relief. According to him, individuals can claim rent relief of up to N500,000, capped at 20 per cent of their annual rent. He said this measure will increase the disposable income of low-income earners and help ease the pressure of rising accommodation costs.
Oyedele added that lease agreements with an annual value below N10 million, or ten times the annual minimum wage, are exempt from stamp duty. He said this will reduce the cost of formal tenancy agreements, particularly for small businesses and ordinary Nigerians.
On incentives for investors, he said individuals will no longer pay Capital Gains Tax when they dispose of a dwelling house or an interest in one. According to him, this exemption will encourage more investment in residential property.
He also disclosed that Real Estate Investment Trusts will enjoy Companies Income Tax exemption if they distribute at least 75 per cent of their dividend or rental income within 12 months after the end of their financial year. He said this move is expected to attract institutional investors into the housing sector and increase the supply of homes.
The law also provides incentives for companies involved in manufacturing building materials such as iron, steel and domestic appliances. Oyedele said such companies can qualify for tax exemptions under the economic development incentive scheme for up to 10 years. He noted that this will promote local production and reduce dependence on imported materials.
He further stated that there is scope for reducing the Companies Income Tax rate for large businesses from 30 per cent to 25 per cent, a move he said would improve Nigeria’s competitiveness and attract more private sector investment.
Oyedele said the new tax framework also protects workers and small businesses. He explained that the taxable value of employer-provided accommodation is limited to the annual rental value and capped at 20 per cent of the employee’s annual gross income, excluding the rental value. This, he said, ensures that workers are not overtaxed on housing benefits provided by their employers.
He added that small companies will benefit from zero per cent Companies Income Tax. Such companies will also be exempt from charging VAT and will not have Withholding Tax deducted from their invoices and payments. According to him, this will give small contractors and suppliers more room to grow.
“Claims suggesting a new tax on building materials or bank funds are false and misrepresent the law,” Oyedele said.
He maintained that the overall goal of the Nigeria Tax Act 2025 is to make housing more affordable, promote real estate development, support local manufacturing of building materials and grant meaningful rent relief to tenants.
Ending his message with a call for calm and careful reading of the law, Oyedele said, “Fact not fear, evidence beats emotion. If anyone makes an alarming claim or tries to misinform you, ask them, ‘Where is it in the law?’”
He added that with the new tax laws in place, housing costs should reduce and rent should go down, not up.
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Gumi Defends Dialogue As Sole Solution To Nigeria’s Insecurity
Islamic cleric Sheikh Ahmad Gumi recently defended his past interactions with armed groups, stating he “took the bull by the horns” in 2021 as a necessary step to address Nigeria’s insecurity.
In a post shared on Facebook on Thursday, Gumi said decades of neglect of disadvantaged populations had created deep socio-economic inequalities, leaving many youths vulnerable to manipulation by external forces seeking to destabilise the country.
According to him, the widening gap between the rich and the poor has turned many young people into “ready-made foot soldiers” in cycles of violence that enable the exploitation of Nigeria’s resources.
He also criticised the political class for being largely unresponsive, while noting that the intellectual community is preoccupied with survival struggles.
Reflecting on his past efforts, Gumi said he “took the bull by the horns” in 2021 by attempting to reintegrate violent elements into society rather than allowing them to be further radicalised.
He wrote: “Nigeria for decades has ignored the underprivileged section of its society. There is a significant socio-economic discrepancy, and the society is stratified. This makes our teaming youth ready-made foot soldiers for any foreign interest trying to divide us and rule. To plunder our resources while we are involved in a vicious circle of violence.
”Unfortunately, the political class is unattentive while the intelligentsia is held hostage in the struggle for existence.
“In 2021, I took the bull by the horns in an attempt to bring some of these uncouth elements back to our fold rather than letting them be exploited by the devil.
“I still believe this is the only way out of our predicament. However, it needs the political will and determination to achieve.
“May Allah bring peace back to our nation.”
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Court Clears Senator Ireti Kingibe To Remain Active In ADC
The Federal High Court in Abuja rejected an ex-parte application seeking to bar Senator Ireti Kingibe from participating in the activities of the African Democratic Congress (ADC).
Justice Peter Lifu declined the request from Wuse Ward leaders, ruling that such an order could not be granted without first hearing from the senator.
Instead, the judge ordered the ward leaders said to be loyal to the Minister of the FCT, Nyesom Wike, to put the senator on notice to appear in court to join issues with them on their grievances.
Justice Lifu in a ruling on Thursday held that discretion in such a request for prohibition from party activities and in political matters must be exercised judicially and judiciously.
The judge said justice would be met in the case of the plaintiffs only when the side of the defendant is heard on its merit, along with that of the plaintiffs.
Consequently, the judge ordered that Senator Ireti Kingibe should be served with all court processes by the plaintiffs to enable her become aware of the suit and to prepare her defense.
The judge fixed April 20, 2026, for the plaintiffs and the serving senator to appear before him for hearing of all applications in the matter.
Those who sued the senator in the suit marked FHC/ABJ/ CV/539/2026 are Okezuo Godfrey Anayo and Isaiah Ojonugwa Samuel, on behalf of themselves and ward members as plaintiffs. The senator is the sole defendant.
In their ex-parte application, Kingibe representing the FCT in the Senate was said to have been suspended on March 10, 2026 by her Wuse Ward executives following allegations of anti-party activities and disregard of your cnstitution of the ADC.
In the ex- parte application filed on their behalf by a Senior Advocate of Nigeria, SAN, Kolawole Olowookere, the aggrieved ADC members in Wuse Ward applied for an order of interim injunction restraining Kingibe from parading herself as a member of party, pending the hearing and determination of their motion on notice for interlocutory injunction.
They also asked the judge to restrain the senator from performing any function, attending meetings or performing activities reserved for ADC members or representing the party in any activities.
Besides, the Ward Executive Committee had asked that she be restrained from further interfering with the administration of the ward, ward register and other activities.
The suit was predicated on five grounds among which are that Mrs Kingibe was placed on suspension due to anti-party activities, gross misconduct and confiscation of the ward statutory records.
They argued that the suspension followed due process as enshrined in the ADC constitution and ratified by the two thirds majority of the EXCO members.
They averred that despite the communication of the suspension to Kingibe, she has continued to hold parallel meetings, issue press statements as an ADC member, and using her security details to intimidate the executive committee.
“Her actions constitute flagrant disregard to the internal mechanism of the party,” the plaintiffs stated.
Meanwhile, a lawyer, Abubakar Marshall who claimed to be representing the senator, announced that he had filed a preliminary objection against the suit. He added that it was served on M. S. Garba, who stood for the plaintiffs at Thursday’s proceedings.
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COAS Shaibu Hits Jos To Restore Peace, Public Confidence
The Chief of Army Staff (COAS), Lieutenant General Waidi Shaibu, visited Jos, Plateau State, on Thursday, April 2, 2026, to lead a high-powered security assessment following recent security breaches.
The visit was aimed at strengthening public confidence and reinforcing ongoing efforts to stabilize affected communities.
Colonel Appolonia Anele, acting Director, Army Public Relations, said in a statement that the visit forms part of ongoing efforts to restore calm and entrench lasting peace across the state.
According to the statement, upon arrival, the COAS was received by the Executive Governor of Plateau State, Caleb Mutfwang, in a clear demonstration of strong civil-military cooperation and a shared commitment to addressing emerging security challenges.
The statement said the COAS received a comprehensive operational briefing from the General Officer Commanding 3 Division and Commander, Joint Task Force Operation ENDURING PEACE, Major General Folusho Oyinlola, who highlighted ongoing operations and proactive measures being implemented in synergy with other security agencies to contain threats, protect lives and property, and stabilise affected communities.
“As part of his engagements, Lieutenant General Shaibu also interacted with community leaders and residents, reassuring them of the unwavering commitment of the Nigerian Army to safeguarding all law-abiding citizens.
He urged residents to remain calm, vigilant and supportive of security agencies by complying with the curfew and cooperating fully with ongoing operations and investigations, while going about their lawful activities.
The chairman of Jos North Local Government Area, Hon. Dachung Bagos, commended the COAS for the timely visit, noting that the presence of the nation’s top military leadership would boost public confidence and reinforce trust in ongoing security efforts.
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