The Nigeria Revenue Service (NRS) has dismissed as false a viral claim that the Nigeria Tax Act 2025 will take effect in 2027 and impose a 25 per cent levy on building materials and construction funds, stating that the law is already operational and contains no such provision.
In a press release dated February 16, 2026, the Service said it was compelled to respond to “misleading information circulating in a recent video” about the new tax regime.
“The Nigeria Tax Act 2025 is already in effect, and it does not introduce any 25% tax on building materials, construction costs, housing funds, or related transactions,” the agency stated.
The NRS explained that the legislation was enacted to address housing challenges by lowering costs and promoting activity in the real estate and construction space. It maintained that the framework was structured to expand participation in the housing market and drive development along the value chain.
Detailing the contents of the law, the Service listed a number of reliefs aimed at supporting prospective homeowners, developers and investors. These include VAT exemptions on the sale and lease of eligible residential properties, including rent, as well as VAT waivers for the supply of eligible building and construction inputs under defined conditions.
It also highlighted mortgage interest relief for owner-occupied homes, allowing deductions of up to ₦8,000,000, and tax incentives for developers and institutional investors. The statement noted exemptions for qualifying Real Estate Investment Trusts (REITs) and reliefs for eligible housing-related financing structures.
The agency further pointed to withholding tax and VAT reliefs introduced to ease compliance obligations and encourage investment in the sector.
Addressing the central allegation in the viral video, the NRS stressed that the Act “does not impose any additional tax burden such as a ‘25% tax’ on building materials or construction funds.” It added that the law does not restrict how individuals finance housing projects or transfer funds for construction.
The Service urged Nigerians to disregard unverified claims and seek clarification from official government channels. It restated its commitment to transparency and to implementing the Nigeria Tax Act 2025 in a way that strengthens the economy, improves access to housing and safeguards public interest.
