New Tax Bill to Remove VAT on Rent, Land, and Property Transactions

Nigeria’s real estate and construction industries are set to benefit from a proposed Tax Reform Bill aimed at making housing more affordable and encouraging investment. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, announced that the bill will remove Value Added Tax (VAT) from key real estate transactions—including land purchases, property sales, and rental payments.

Oyedele made this announcement at the Building and Construction Industry Forum, co-hosted by the Council of Registered Builders of Nigeria (CORBON) and the Housing Development Advocacy Network (HDAN). He emphasized that the reforms are designed to support low- and middle-income Nigerians by easing financial pressure across the housing value chain.

“There will be no VAT on land, property sales, or rent,” Oyedele said. “This bill addresses long-standing concerns by offering clarity and meaningful relief.”

The proposed bill also eliminates stamp duty on rental agreements below ₦10 million per month and waives capital gains tax on the sale of residential properties—particularly primary homes. These measures are expected to lower housing costs and reduce barriers to homeownership.

In a bid to boost local manufacturing, the bill includes fiscal incentives for producers of building materials, especially in the non-metallic products sector. This is intended to drive down construction input costs and stimulate industrial growth.

“Our mission is to reduce the tax burden on everyday Nigerians and enhance housing access,” Oyedele said. “This reform is part of a broader strategy to stimulate the economy and improve quality of life.”

The bill also proposes reforms in land administration, including a more efficient property titling process and harmonization of land-related taxes across all levels of government—reforms long advocated by stakeholders in the built environment.

Oyedele urged the public to seek accurate information and avoid being misled by social media narratives. “This is not about increasing taxes,” he concluded. “It’s about building a fairer, simpler, and more transparent tax system.”