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

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Mr. Taiwo Oyedele as the new Minister of State for Finance
Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee

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

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Bandits Abduct Seven Family Members, Three Neighbors in Kaduna

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Commissioner of Police in Kaduna State is CP Muhammad Rabiu

Bandits Abduct Seven Family Members, Three Neighbors in Kaduna

Suspected bandits have abducted ten people, including seven members of a single family, in a violent raid on Unguwar Sabon‑Titi, along Katari‑Hayin Dam in Kaduna State’s Kachia Local Government Area.

The attack occurred around 9:32 p.m. on Thursday, according to a local resident, Mr. Markus Yakubu, who described how the gunmen, armed with sophisticated weapons, quietly surrounded a family compound before whisking away the victims. The bandits then moved to a neighboring house and abducted three more residents.

Yakubu identified the abducted as Jummai Amos, Barnabas Amos, Iko Amos, Baby Amos, Eunice Amos, Eshiwan Amos, Godwin Amos, Bagudu Damisa, Evelyn Damisa, and Alfred Iriyo. He explained that the assailants refrained from firing inside the town, possibly because the attacked houses were close to the District Police Officer’s residence in Katari, only beginning to shoot after moving the victims away from the area.

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A community leader, speaking on condition of anonymity, confirmed receiving distress calls about the raid but said security operatives’ contacts were unreachable, leaving locals to await intervention. Neighbors reportedly visited the homes of the abducted on Friday morning to offer support to the families.

A security source also confirmed that police and military personnel are combing forests and surrounding areas in search of the kidnappers and to rescue the victims alive. Efforts to reach the Kaduna State Police Command spokesman, DSP Hassan Mansur, for comment were unsuccessful.

The incident highlights the persistent insecurity in Kaduna State, where rural communities have frequently been targeted by armed bandits. Residents continue to demand urgent government action, improved security patrols, and rapid response teams to prevent further abductions and ensure the safe return of victims.

Bandits Abduct Seven Family Members, Three Neighbors in Kaduna

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Fani‑Kayode Fires Back at Peter Obi, Defends NADECO’s Legacy

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Former Minister of Aviation Femi Fani‑Kayode
Former Minister of Aviation Femi Fani‑Kayode

Fani‑Kayode Fires Back at Peter Obi, Defends NADECO’s Legacy

Former Minister of Aviation Femi Fani‑Kayode has sharply criticised Peter Obi over remarks perceived to diminish the role of the National Democratic Coalition (NADECO) in Nigeria’s democratic history, thrusting the debate over the nation’s pro‑democracy legacy back into the spotlight.

In a lengthy post shared widely on social media, Fani‑Kayode labelled Obi’s alleged comments about NADECO as “a crying shame” and warned that they “shall not go unanswered.” He accused Obi of attempting to denigrate the sacrifices of NADECO leaders and activists who opposed military rule in the 1990s.

Peter Obi’s attack on NADECO and his attempt to denigrate the leaders of that movement and its members — who single‑handedly fought military rule and made the ultimate sacrifice for democracy in our country — is a crying shame,” Fani‑Kayode wrote.

He recalled how Obi, in his early political life, had been associated with the administration of General Sani Abacha, one of Nigeria’s most oppressive military rulers. Fani‑Kayode contrasted this with the actions of NADECO figures and footsoldiers who resisted military oppression, endured persecution and brutality, and were driven into exile for their activism.

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Fani‑Kayode stressed the heavy cost paid by NADECO members during the struggle. “Many of us were in NADECO and are living witnesses to what happened. We spoke out, wrote articles, suffered persecution, were locked up, were tortured, were killed and were forced into exile,” he said. He argued that the sacrifices made between 1992 and 1999 should never be dismissed or belittled.

The former minister also took aim at politicians linked with the African Democratic Congress (ADC), including ex‑Senate President David Mark. Fani‑Kayode alleged that Mark had previously spoken against Moshood Kashimawo Olawale Abiola, the presumed winner of the June 12, 1993 presidential election whose annulment by the military regime of Ibrahim Babangida plunged the country into prolonged unrest.

He reiterated that NADECO activists faced brutal repression, including imprisonment, torture, and exile under successive military rulers, and warned that Nigeria’s current democratic freedoms and free speech are the results of those struggles.

He (Obi) should enjoy the democracy and free speech that we have today which others fought and died for between 1992 and 1999,” Fani‑Kayode said, urging Obi and others to refrain from comments that appear to undermine the legacy of pro‑democracy figures.

Obi’s comments, though not publicly expanded in recent days, sparked discussions across political and historical circles, with analysts noting that the debate over Nigeria’s democratic heritage and the sacrifices of groups like NADECO remains politically sensitive, particularly as the country continues to grapple with governance, electoral reforms, and national identity.

Political commentators also highlighted how the exchange reflects broader tensions within Nigeria’s opposition and among public figures vying to define the narrative of the nation’s democratic journey.

As of now, Obi’s camp has not formally responded to Fani‑Kayode’s rebuttal, but the debate has garnered attention on social media and in political commentary platforms, underscoring the enduring significance of NADECO’s legacy in contemporary political discourse.

Fani‑Kayode Fires Back at Peter Obi, Defends NADECO’s Legacy

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Plateau Killings: Ezekwesili Blasts Tinubu, APC Over ‘Failure to Act’

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Former Minister of Education, Oby Ezekwesili
Former Minister of Education, Oby Ezekwesili

Plateau Killings: Ezekwesili Blasts Tinubu, APC Over ‘Failure to Act’

Former Minister of Education, Oby Ezekwesili, has strongly criticised President Bola Tinubu and the ruling All Progressives Congress (APC) over the ongoing killings in Plateau State, accusing the government of inaction and failure to protect citizens.

In a sharply worded statement posted on her X account, Ezekwesili questioned the priorities of political leaders who continue with engagements while communities are under attack. She condemned what she described as a pattern where authorities respond to violence with statements, silence, and committee formations instead of decisive security action.

Reacting to disturbing images from recent attacks in Jos, she said the blood of innocent Nigerians rests on leaders who “knew, looked away, and chose a convention hall over a command centre,” warning that such conduct reflects a deeper governance failure.

The former minister also raised concerns about the normalisation of violence in Nigeria, stressing that citizens must reject any situation where human lives are treated as expendable. She urged Nigerians to transform grief into collective action, demanding accountability, justice, and urgent reforms to address insecurity.

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Her comments come amid renewed violence in Plateau State, particularly in Jos North and nearby communities, where recent attacks have reportedly left dozens dead and many injured. The persistent crisis has once again drawn attention to the fragile security situation in Nigeria’s north-central region.

Despite increased military presence and government assurances, Plateau has continued to experience recurring attacks linked to communal tensions, armed groups, and farmer-herder conflicts. Analysts say the repeated outbreaks highlight the limitations of current security strategies.

President Tinubu had earlier condemned the attacks and directed security agencies to bring perpetrators to justice, while promising that such incidents would not recur. Additional security deployments and restrictions have also been introduced in affected areas.

However, critics argue that these responses remain largely reactive, with little progress in addressing the underlying causes of the violence. Ezekwesili’s remarks add to growing public pressure on the federal government to adopt a more proactive and coordinated approach to national security.

As outrage continues to build, many Nigerians are calling for stronger leadership, improved intelligence gathering, and decisive action to end the cycle of killings and restore confidence in government.

Plateau Killings: Ezekwesili Blasts Tinubu, APC Over ‘Failure to Act’

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