The Federal Government has announced that property rents below ₦10 million will be exempt from stamp duties, as part of the sweeping tax reforms currently before the National Assembly.
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, revealed the development at the Building and Construction Industry Forum in Abuja. The event, themed “Nigeria’s Tax Reforms and the Building and Construction Industry: Implications and Opportunities,” was organised by the Council of Registered Builders of Nigeria (CORBON) in collaboration with the Housing Development Advocacy Network.
According to Oyedele, the exemption aims to ease the financial burden on average Nigerians who rent homes, while ensuring a more progressive approach to taxation.
“What we have done in the reform bills is to make the rules very clear so there is no ambiguity. We have added a stamp duty exemption for rents below ₦10 million,” Oyedele said.
“This means if you are paying rent which most Nigerians do you won’t need to pay stamp duty unless you’re paying more than ₦10 million. It’s not about punishing the rich; it’s about equitable ability to pay.”
In addition to the rent exemption, Oyedele announced further pro-growth measures, including:
- Exemption from Capital Gains Tax on the sale of an individual’s primary residence (dwelling house).
- A reduction in withholding tax on construction services to a maximum of 2%, significantly down from previous rates.
These measures, he noted, were designed to support the building and construction industry, lower housing costs, and attract more investment.
Speaking at the event, Festus Adebayo, Executive Director of the Housing Development Advocacy Network, urged the tax reform committee to go further by introducing incentives or tax rebates for developers investing in low-cost housing.
“With the reform still in the National Assembly, there’s a golden opportunity to incentivise developers. Many of them are currently burdened by high fees and rent-related costs,” Adebayo said.
Also speaking, Sa’adiya Aliyu-Aminu, Managing Director of Urban Shelter, emphasized the importance of taxation as a tool for economic diversification and transparency.
“Effective taxation reduces our dependence on oil, improves accountability, and makes Nigeria more attractive to both local and foreign investors,” she stated.
Earlier, CORBON Chairman Samson Opaluwah highlighted the forum’s importance in shaping how tax policy can drive sustainable growth in Nigeria’s construction sector.
The proposed reforms come amid broader efforts by the Tinubu administration to revamp Nigeria’s fiscal landscape, spur investment, and address the country’s housing deficit.
