Nigeria Tax Act 2025: FG Clarifies No New Construction or Bank Taxes

The Federal Government has dismissed claims that the Nigeria Tax Act 2025 imposes a 25% tax on building materials, construction-related funds, business expenses, or money in bank accounts. The government described the viral video circulating on social media as false and misleading, adding that the law, which has already taken effect, does not postpone implementation until 2027.

Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, said the misinformation misrepresents the objectives of the Tax Act, which are to lower housing costs, support real estate development, and encourage economic growth. He clarified that the video’s claims — that the law would start in 2027 and impose a 25% levy on construction transactions — are both inaccurate.

Under the new law, several housing and construction reliefs have been introduced. Land and buildings are exempt from Value Added Tax (VAT) under Section 185(l), while contractors can recover VAT on materials and services, reducing overall construction expenses. The Withholding Tax (WHT) rate on construction contracts has been lowered to 2%, improving cash flow for developers. Individuals building owner-occupied homes can deduct mortgage interest, and property owners earning rental income may deduct expenses such as repairs, insurance, and agency fees. These provisions are designed to make housing projects more affordable and attractive to investors.

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The Act also offers direct support for renters and low-income earners. Eligible tenants can claim rent relief of up to ₦500,000, equivalent to 20% of annual rent, while rent payments are fully exempt from VAT. Lease agreements below ₦10 million per year, or less than ten times the national minimum wage, are also exempt from stamp duty. These measures are expected to increase disposable income for low-income households and reduce the financial burden of housing.

Incentives under the Act extend to investors and businesses in the construction and real estate sectors. Individuals are exempt from Capital Gains Tax when selling a dwelling house or interest in one. Real Estate Investment Trusts (REITs) distributing at least 75% of dividends or rental income within 12 months are exempt from Companies Income Tax. Manufacturers of building materials, including iron, steel, and domestic appliances, may qualify for tax holidays of up to 10 years, while large businesses could see Companies Income Tax reduced from 30% to 25%. These provisions are intended to encourage investment, stimulate local production, and support the growth of the housing sector.

The Tax Act also includes provisions that relieve workers and small businesses. The taxable value of employer-provided accommodation is capped at 20% of an employee’s annual gross income, excluding rental value. Small companies that qualify under the Act will pay 0% Companies Income Tax, are exempt from charging VAT, and are not required to deduct Withholding Tax from invoices and payments. These measures reduce the compliance burden on smaller businesses and support entrepreneurship.

The committee also clarified what the Act does not include. It does not tax money in bank accounts, does not impose 25% taxes on construction costs or building materials, and does not delay implementation until 2027. Officials described claims suggesting otherwise as misleading and urged Nigerians to rely on verified government sources for accurate information. According to the committee, the Tax Act is intended to make housing more affordable, reduce rent, and stimulate economic growth, not to increase taxes on citizens or businesses.

Nigeria Tax Act 2025: FG Clarifies No New Construction or Bank Taxes

Residents Flee as Gunmen Launch Fresh Attack on Kwara Community

Barely 24 hours after armed bandits attacked communities in Patigi Local Government Area and Edu Local Government Area, suspected terrorists on Sunday night carried out a fresh attack on Share, the headquarters of Ifelodun Local Government Area, forcing residents to flee for safety.

The attack reportedly occurred around 8:00 pm, when heavily armed gunmen stormed the town and began shooting indiscriminately, throwing the community into panic and confusion. Residents said the sustained gunfire lasted for a prolonged period, prompting many families to abandon their homes and seek refuge in neighbouring areas.

Eyewitnesses, who spoke on condition of anonymity, said the assailants appeared to be on a targeted mission, allegedly searching for specific individuals. One resident claimed the gunmen were looking for a person identified as Zulu Alfa Dako, adding that the attackers entered the town from a nearby axis.

“Kidnappers have entered Share; everyone is running for safety,” a resident said. “They kept shooting endlessly and the whole town was thrown into chaos.”

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Another resident, overwhelmed by fear, said while the attackers targeted some individuals, it was still unclear whether anyone was abducted during the operation.

“The gunmen entered the town and caused havoc by shooting non-stop. I don’t know if anyone has been kidnapped yet,” the resident said.

Efforts to get immediate comments from the Kwara State Police Command spokesperson, SP Adetoun Ejire-Adeyemi, were unsuccessful as of press time.

However, the Kwara State Government later confirmed that the attackers were repelled by security forces. The Special Assistant on Communication to Governor Abdulrahman Abdulrazaq, Ibrahim Abdullateef, said combined security operatives swiftly responded to distress calls and engaged the gunmen.

“Local security sources have reported that bandits that were reportedly attacking Share community, Ifelodun LGA, have been successfully repelled by combined security forces,” Abdullateef said in an update.

He added that the exchange of gunfire lasted for about one hour, noting that no death or abduction has been officially recorded so far, though security agencies are still monitoring the situation.

The latest attack came against the backdrop of rising insecurity in Kwara State, following bandit raids on communities in Edu and Patigi LGAs, where four people were kidnapped and several others injured. The back-to-back attacks have heightened fear among residents and renewed calls for stronger security presence, improved intelligence gathering, and sustained patrols across vulnerable communities.

Residents Flee as Gunmen Launch Fresh Attack on Kwara Community

DSS Probes El-Rufai’s Claim of Toxic Chemical Import by Ribadu

Nigeria’s National Security Adviser, Nuhu Ribadu, has formally reported former Kaduna State Governor, Nasir El-Rufai, to the Department of State Services (DSS) over an allegation that the Office of the National Security Adviser (ONSA) imported Thallium Sulphate, a toxic chemical, into Nigeria.

The allegation was referred to the DSS in a letter dated February 13, 2026, written on behalf of Ribadu by Brigadier-General O.M. Adesuyi. The letter acknowledged El-Rufai’s earlier correspondence seeking clarification on claims that ONSA procured about 10 kilograms of Thallium Sulphate, allegedly from a supplier in Poland.

According to the letter, the allegation has been formally handed over to the DSS for a comprehensive investigation, given the grave national security and public safety implications associated with toxic and tightly regulated chemical substances.

Adesuyi stated that El-Rufai and any of his associates with relevant information would be invited by the DSS to submit evidence, documents, or testimonies to support the claim.

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“Your Excellency and other parties involved, who may possess relevant information relating to this claim, will be duly invited by the service to provide any evidence that may assist in an in-depth investigation, establishing the facts and ensuring due diligence,” the letter said.

The NSA, however, categorically denied the allegation, stressing that ONSA has neither procured nor initiated any process for the purchase of Thallium Sulphate and has no intention of doing so.

The controversy began after El-Rufai raised public alarm, accusing Ribadu of importing a dangerous toxic substance into the country. In a letter dated January 30, 2026, El-Rufai said he was writing “as a concerned citizen” to seek clarification over information allegedly available to opposition political leaders regarding the procurement.

He argued that thallium salts are highly poisonous and strictly controlled worldwide, adding that transparency was necessary to protect public trust, democratic accountability, and national safety.

El-Rufai had also claimed during a television interview that the NSA’s phone had been tapped and that Ribadu was listening to his conversations—an allegation that further escalated political tension around the issue.

Security analysts say the DSS probe will be crucial in determining whether the claim has any factual basis or amounts to a false security alarm capable of undermining public confidence and national stability. As of the time of filing this report, the DSS has not issued an official statement, while El-Rufai has yet to publicly respond to the referral of his allegation for investigation.

DSS Probes El-Rufai’s Claim of Toxic Chemical Import by Ribadu