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Tax law won’t deduct 25% from building materials sales – Oyedele

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The Chairman of the Presidential Fiscal and Tax Reform Committee, Taiwo Oyedele, has debunked a video in which former Minister of Transport, Rotimi Amaechi alleged claims at the new ta policy

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๐‚๐ฅ๐š๐ซ๐ข๐Ÿ๐ข๐œ๐š๐ญ๐ข๐จ๐ง: ๐“๐ก๐ž ๐๐ข๐ ๐ž๐ซ๐ข๐š ๐“๐š๐ฑ ๐€๐œ๐ญ 2025 ๐ก๐š๐ฌ ๐‚๐จ๐ฆ๐ฆ๐ž๐ง๐œ๐ž๐ ๐š๐ง๐ ๐ƒ๐จ๐ž๐ฌ ๐๐Ž๐“ ๐ˆ๐ฆ๐ฉ๐จ๐ฌ๐ž ๐š 25% ๐“๐š๐ฑ ๐จ๐ง ๐๐ฎ๐ข๐ฅ๐๐ข๐ง๐  ๐Œ๐š๐ญ๐ž๐ซ๐ข๐š๐ฅ๐ฌ ๐จ๐ซ ๐…๐ฎ๐ง๐๐ฌ

We are aware of a recent video claiming that the new tax laws will commence in 2027 and alleging the imposition of a 25% tax on funds for building materials and other transactions.

Both claims are incorrect. 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% tax on construction funds, bank balances, or business expenses. Instead, it contains provisions specifically designed to reduce the cost of housing, rent and real estate development.

๐Š๐ž๐ฒ ๐๐ซ๐จ๐ฏ๐ข๐ฌ๐ข๐จ๐ง๐ฌ ๐จ๐Ÿ ๐ญ๐ก๐ž ๐๐ข๐ ๐ž๐ซ๐ข๐š ๐“๐š๐ฑ ๐€๐œ๐ญ, 2025

Relevant provisions to make housing more affordable, encourage real estate development, and support small business property contractors and low-income renters include:

1. ๐‘ณ๐’๐’˜๐’†๐’“ ๐‘ช๐’๐’”๐’• ๐’๐’‡ ๐‘ฉ๐’–๐’Š๐’๐’…๐’Š๐’๐’ˆ ๐’‚๐’๐’… ๐‘ท๐’“๐’๐’‘๐’†๐’“๐’•๐’š ๐‘ซ๐’†๐’—๐’†๐’๐’๐’‘๐’Ž๐’†๐’๐’•

๐˜๐˜ˆ๐˜› ๐˜Œ๐˜น๐˜ฆ๐˜ฎ๐˜ฑ๐˜ต๐˜ช๐˜ฐ๐˜ฏ ๐˜ฐ๐˜ฏ ๐˜“๐˜ข๐˜ฏ๐˜ฅ ๐˜ข๐˜ฏ๐˜ฅ ๐˜‰๐˜ถ๐˜ช๐˜ญ๐˜ฅ๐˜ช๐˜ฏ๐˜จ๐˜ด (๐˜š.185(๐˜ญ)): Land and buildings are now specifically exempt from Value Added Tax (VAT).

๐˜๐˜ฏ๐˜ฑ๐˜ถ๐˜ต ๐˜๐˜ˆ๐˜› ๐˜Š๐˜ณ๐˜ฆ๐˜ฅ๐˜ช๐˜ต๐˜ด ๐˜ง๐˜ฐ๐˜ณ ๐˜Š๐˜ฐ๐˜ฏ๐˜ต๐˜ณ๐˜ข๐˜ค๐˜ต๐˜ฐ๐˜ณ๐˜ด: Where VAT is chargeable on any materials or service, contractors can now recover VAT on their assets and overhead costs, which lowers overall construction costs.

๐˜™๐˜ฆ๐˜ฅ๐˜ถ๐˜ค๐˜ฆ๐˜ฅ ๐˜ž๐˜ช๐˜ต๐˜ฉ๐˜ฉ๐˜ฐ๐˜ญ๐˜ฅ๐˜ช๐˜ฏ๐˜จ ๐˜›๐˜ข๐˜น (๐˜ž๐˜๐˜›): A lower 2% WHT rate is applicable on construction contracts, helping to conserve cash flow and reduce financing pressure on developers.

๐˜“๐˜ฐ๐˜ข๐˜ฏ ๐˜๐˜ฏ๐˜ต๐˜ฆ๐˜ณ๐˜ฆ๐˜ด๐˜ต ๐˜‹๐˜ฆ๐˜ฅ๐˜ถ๐˜ค๐˜ต๐˜ช๐˜ฐ๐˜ฏ (๐˜š.30(2)(๐˜ช๐˜ท)): Mortgage interest is tax-deductible for individuals developing an owner-occupied residential house.

๐˜‹๐˜ฆ๐˜ฅ๐˜ถ๐˜ค๐˜ต๐˜ช๐˜ฃ๐˜ญ๐˜ฆ ๐˜™๐˜ฆ๐˜ฏ๐˜ต๐˜ข๐˜ญ ๐˜Œ๐˜น๐˜ฑ๐˜ฆ๐˜ฏ๐˜ด๐˜ฆ๐˜ด (๐˜š.20): Property owners who earn rental income can deduct related costs such as repairs, insurance, and agency fees.

2. ๐‘ซ๐’Š๐’“๐’†๐’„๐’• ๐‘น๐’†๐’๐’Š๐’†๐’‡ ๐’‡๐’๐’“ ๐‘น๐’†๐’๐’•๐’†๐’“๐’” ๐’‚๐’๐’… ๐‘ป๐’†๐’๐’‚๐’๐’•๐’”

๐˜™๐˜ฆ๐˜ฏ๐˜ต ๐˜™๐˜ฆ๐˜ญ๐˜ช๐˜ฆ๐˜ง (๐˜š.30(2)(๐˜ท๐˜ช)): Individuals can claim relief up to โ‚ฆ500,000 (20% of annual rent), increasing disposable income for low-income earners.

๐˜๐˜ˆ๐˜› ๐˜Œ๐˜น๐˜ฆ๐˜ฎ๐˜ฑ๐˜ต๐˜ช๐˜ฐ๐˜ฏ ๐˜ฐ๐˜ฏ ๐˜™๐˜ฆ๐˜ฏ๐˜ต (๐˜š.185(๐˜ญ)): The VAT exemption on land and buildings also covers rent which is fully exempt from Value Added Tax.

๐˜š๐˜ต๐˜ข๐˜ฎ๐˜ฑ ๐˜‹๐˜ถ๐˜ต๐˜บ ๐˜™๐˜ฆ๐˜ญ๐˜ช๐˜ฆ๐˜ง (๐˜š.134): Lease agreements with an annual value below โ‚ฆ10,000,000 (or 10 times the annual minimum wage) are exempt from stamp duty.

3. ๐‘ฐ๐’๐’„๐’†๐’๐’•๐’Š๐’—๐’†๐’” ๐’‡๐’๐’“ ๐‘ฐ๐’๐’—๐’†๐’”๐’•๐’๐’“๐’” ๐’‚๐’๐’… ๐‘ซ๐’†๐’—๐’†๐’๐’๐’‘๐’†๐’“๐’”

๐˜Š๐˜ข๐˜ฑ๐˜ช๐˜ต๐˜ข๐˜ญ ๐˜Ž๐˜ข๐˜ช๐˜ฏ๐˜ด ๐˜›๐˜ข๐˜น ๐˜Œ๐˜น๐˜ฆ๐˜ฎ๐˜ฑ๐˜ต๐˜ช๐˜ฐ๐˜ฏ (๐˜š.51(1)): Individuals pay no Capital Gains Tax (CGT) when disposing of a dwelling house or an interest in one.

๐˜™๐˜Œ๐˜๐˜› ๐˜๐˜ฏ๐˜ค๐˜ฆ๐˜ฏ๐˜ต๐˜ช๐˜ท๐˜ฆ๐˜ด (๐˜š.162(๐˜ค)): Real Estate Investment Trusts (REITs) are exempt from Companies Income Tax (CIT) when distributing at least 75% of their dividend or rental income within 12 months after the financial year-end.

๐˜—๐˜ณ๐˜ช๐˜ฐ๐˜ณ๐˜ช๐˜ต๐˜บ ๐˜š๐˜ฆ๐˜ค๐˜ต๐˜ฐ๐˜ณ ๐˜๐˜ฏ๐˜ค๐˜ฆ๐˜ฏ๐˜ต๐˜ช๐˜ท๐˜ฆ๐˜ด: Manufacturing of building materials such as iron, steel, and domestic appliances qualifies for specific tax exemption under the economic development incentive scheme for up to 10 years.

๐˜™๐˜ฆ๐˜ฅ๐˜ถ๐˜ค๐˜ฆ๐˜ฅ ๐˜Š๐˜ฐ๐˜ณ๐˜ฑ๐˜ฐ๐˜ณ๐˜ข๐˜ต๐˜ฆ ๐˜›๐˜ข๐˜น ๐˜™๐˜ข๐˜ต๐˜ฆ (๐˜š.56): Scope for the reduction of companies income tax rate for large businesses from 30% to 25%.

4. ๐‘ท๐’“๐’๐’•๐’†๐’„๐’•๐’Š๐’๐’ ๐’‡๐’๐’“ ๐‘พ๐’๐’“๐’Œ๐’†๐’“๐’” ๐’‚๐’๐’… ๐‘บ๐’Ž๐’‚๐’๐’ ๐‘ฉ๐’–๐’”๐’Š๐’๐’†๐’”๐’”๐’†๐’”

โ€ข ๐˜Š๐˜ข๐˜ฑ ๐˜ฐ๐˜ฏ ๐˜๐˜ฐ๐˜ถ๐˜ด๐˜ช๐˜ฏ๐˜จ ๐˜‰๐˜ฆ๐˜ฏ๐˜ฆ๐˜ง๐˜ช๐˜ต ๐˜›๐˜ข๐˜น (๐˜š.14(6)): The taxable value of employer-provided accommodation is limited to the annual rental value, subject to a maximum of 20% of the employee’s annual gross employment income, excluding the rental value.

โ€ข ๐˜š๐˜ฎ๐˜ข๐˜ญ๐˜ญ ๐˜Š๐˜ฐ๐˜ฎ๐˜ฑ๐˜ข๐˜ฏ๐˜บ ๐˜™๐˜ฆ๐˜ญ๐˜ช๐˜ฆ๐˜ง: Suppliers and contractors who qualify as small companies benefit from 0% Companies Income Tax (CIT), exemption from charging VAT and no deduction of Withholding Tax (WHT) from their invoices and payments.

5. ๐‘พ๐’‰๐’‚๐’• ๐’Š๐’” ๐‘ต๐‘ถ๐‘ป ๐’Š๐’ ๐’•๐’‰๐’† ๐‘ป๐’‚๐’™ ๐‘ณ๐’‚๐’˜

The Act does not:
โ€ข Tax money in bank accounts or bank balances.
โ€ข Tax transfers for buying building materials.
โ€ข Introduce a 25% construction or business cost tax.
โ€ข Delay implementation until 2027.

๐‚๐จ๐ง๐œ๐ฅ๐ฎ๐ฌ๐ข๐จ๐ง:

Claims suggesting a new tax on building materials or bank funds are false and misrepresent the law. Rather, the new tax law specifically introduced measures to make housing more affordable, promote real estate development, incentivise manufacturing of building materials, and grant rent reliefs to tenants to enhance their disposable income.

๐…๐ˆ๐๐€๐‹ ๐–๐Ž๐‘๐ƒ:

โ€œFact Not Fearโ€, evidence beats emotion. If anyone makes an alarming claim or tries to misinform you, ask them โ€œWhere is it in the law?โ€

With the new tax laws, housing should become more affordable and rent should go down NOT up!

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Amaechiโ€™s claims about new tax laws are false โ€” Presidency

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The special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, has slammed former Transportation Minister, Rotimi Amaechi, of disseminating โ€œegregious liesโ€ about Nigeriaโ€™s Tax Act.

The allegation stems from a viral video in which Amaechi warned of severe economic repercussions if the ruling All Progressives Congress retains power in the 2027 elections.

He cited potential negative impacts the tax law could have on Nigerians should the APC win.

He said, โ€œBy January next year, February next year, all of you will be in trouble if APC wins.

โ€œImmediately after the election, APC will implement the tax law. The tax law is if I pay you 100 million Naira for your building materials, automatically 25 million will leave your account.

โ€œIf you are a landlord and building a house, you will charge 25% extra because you wonโ€™t bear it alone; you will transfer it to the person who buys or rents. If the man who rented the house is a doctor, he will do what? Charge more. If heโ€™s a carpenter, he will do the sameโ€ฆ This affects everybody, not just you,โ€ he added.

Amaechi, who joined the opposition African Democratic Congress in 2025, also questioned why the government had not introduced the alleged tax measure before the election, suggesting it was being delayed to avoid voter backlash.

Former Minister of Transportation, Mr. Rotimi Amaechi. Photo: Channels Television
โ€œIf you say itโ€™s a lie, go to your lawyer. Ask your son, if heโ€™s a lawyer, explain to me what is this tax law.

โ€œWhy is Tinubu not implementing it now? Heโ€™s waiting to finish the election so that you donโ€™t punish him,โ€ he added.

He urged citizens to protect their future by participating actively in the electoral process, stressing that the issue would have far-reaching consequences for families and livelihoods nationwide.

โ€œItโ€™s about you. Itโ€™s about your children. You will not have money to pay school feesโ€ฆ If you want to survive, donโ€™t look at my face; whether you like me or not, it is immaterial. It is about your future,โ€ he said.

Reacting, Onanuga accused the former governor of misleading Nigerians about the contents of the Tax Act.

โ€œRotimi Amaechi caught spreading egregious lies about the Tax Act. The former minister, governor, has really slipped so low, misleading people about the law,โ€ he wrote.

He added, โ€œIs this blatant falsehood a foretaste of ADC campaign strategy during the campaign for 2027 election?โ€

The tax laws, which became effective on January 1, 2026, have been the subject of criticism.

Critics argue the changes could increase burdens on low-income earners, though government officials maintain they will foster long-term economic stability.

The laws, signed in June 2025, overhaul the system by consolidating over 70 taxes, renaming the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service (NRS), and introducing digital asset taxation.

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Finally Lagos commences probe as ambulance hits woman during Lagos marathon

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Ambulance hits individual during Lagos marathon Ambulance hits individual during Lagos marathon

The Lagos State Government has launched an investigation into an incident involving an ambulance during the 11th edition of the Access Bank Lagos City Marathon on Saturday.

The Commissioner for Information and Strategy, Gbenga Omotoso, disclosed this in a statement issued late Saturday while clarifying circumstances surrounding the development near the finish line.

According to the statement, the victim, identified as a female non-athlete within the event arena, came in contact with the ambulance while it was conveying athletes who had earlier required medical attention.

Emergency responders reportedly assessed her at the scene before transferring her to a public health facility for further evaluation. Authorities said she sustained bruises and complained of chest pains but was stabilised, with her vital signs confirmed to be stable.

The statement said, โ€œThe Lagos State Government is investigating an unfortunate incident that occurred today, 14th February 2026, near the finishing line area of the 11th Access Bank Lagos City Marathon.

โ€œAn ambulance deployed as part of the official medical emergency response for the event was involved in an incident in which a female non-athlete within the event arena came in contact with the vehicle while it was conveying athletes who had earlier required medical attention.

โ€œOfficials immediately alerted the ambulance crew to stop upon noticing the situation. The emergency medical team promptly assessed and evacuated the affected individual for on-the-spot care before transferring her to a public health facility for further evaluation.

โ€œShe sustained bruises and complained of chest pains but was stabilised at the scene, with vital signs assessed to be stable. She is receiving medical care and responding positively to treatment.

โ€œThe Ministry of Health and the Sports Commission are monitoring the situation, with senior government officials visiting the hospital.

โ€œThe patient is stable, and under close professional supervision.
A thorough investigation into the circumstances surrounding the incident is underway,โ€ the statement added.

Earlier on Saturday, a viral video circulating online showed the moment an ambulance struck an individual during the race, prompting concern among spectators and participants.

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