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

Christian Cleric Builds Mosque in Honour of Tinubu’s Mother

In a development that has sparked widespread conversation across Nigeria’s religious and political space, Primate Elijah Ayodele has built and commissioned a new mosque in Lagos in honour of Chief Abibatu Mogaji, the late mother of President Bola Ahmed Tinubu.

The prominent cleric, who leads the INRI Evangelical Spiritual Church, unveiled the mosque during his annual thanksgiving programme held in Oke-Afa, Isolo, describing the project as a fulfillment of what he called a divine instruction.

According to Ayodele, the decision to construct the mosque was not politically motivated but rooted in spiritual obedience. He stressed that the gesture was not aimed at gaining favour from the presidency or securing political influence, but rather to promote religious harmony and unity in Nigeria. “I built the mosque because God directed me to do so,” the cleric reportedly said at the commissioning ceremony.

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Ayodele explained that the newly completed mosque would be fully handed over to Muslim leaders and the local Islamic community for administration. He stated that neither he nor his church would be involved in its management, reinforcing his claim that the project was purely an act of faith and interreligious goodwill. Originally, the mosque was said to have been planned under a different name, but Ayodele disclosed that he later renamed it in honour of Tinubu’s mother following what he described as further divine direction. Chief Abibatu Mogaji, a respected community leader during her lifetime, remains a significant figure in Lagos political history due to her influence and grassroots mobilisation efforts.

The commissioning event drew attendance from religious leaders, traditional rulers, and political representatives, reflecting the broader significance of the gesture. Observers described the commissioning as a rare example of Christian–Muslim interfaith collaboration, particularly in a country where religious identity often intersects with politics. Supporters say the act underscores the importance of peaceful coexistence and tolerance between faiths, while critics have questioned the timing and broader implications of the move within Nigeria’s political climate.

Nonetheless, Ayodele maintained that the mosque stands as a symbol of unity and obedience to divine guidance, rather than a calculated political gesture. The development has since generated conversations online, with many Nigerians debating its spiritual, social and political dimensions.

Christian Cleric Builds Mosque in Honour of Tinubu’s Mother