Federal Government Refutes Claims of 25% Levy on Construction Materials
The Federal Government of Nigeria, under President Bola Ahmed Tinubu, has issued a strong rebuttal to allegations made by former Minister of Transportation, Rotimi Amaechi, regarding a purported 25% tax on building materials. In a statement released on Sunday, February 15, 2026, the government categorically denied any such levy under the newly enacted Nigeria Tax Act 2025.
Tax Reform Chairman Dispels Misinformation
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, addressed the issue via his social media platform, labeling Amaechi's claims as false and misleading. Oyedele emphasized that the video circulating online, which warned of economic hardship if the ruling All Progressives Congress retains power in 2027, is based on incorrect information.
Oyedele stated, "We are aware of a recent video alleging that the new tax laws will start in 2027 and impose a 25% tax on funds for building materials and other transactions. Both claims are incorrect. The Nigeria Tax Act 2025 has already commenced and does not include such a tax."
Clarification on Tax Act Provisions
Contrary to the misinformation, the Nigeria Tax Act 2025 is designed to enhance housing affordability and reduce rental costs across the country. Oyedele highlighted that the law contains specific provisions aimed at lowering expenses related to real estate development, rather than increasing them through levies on construction materials or bank balances.
He urged the public to rely on factual evidence, saying, "Fact Not Fear: evidence beats emotion. If anyone makes an alarming claim, ask them, 'Where is it in the law?' With the new tax laws, housing should become more affordable, and rent should go down, not up."
Background and Public Reaction
The controversy stems from a viral video where Amaechi criticized the tax reforms, suggesting they would worsen economic conditions. In response, Nigerians have expressed mixed reactions on social media. Some users praised the government's appointment of Oyedele, citing his private sector expertise and integrity, while others remained skeptical about transparency in the tax law's implementation.
Key points from the discussion include:
- Support for Tinubu's strategic choice of tax reform leadership.
- Calls for greater public education on the new tax provisions.
- Ongoing debates about trust in government officials.
Broader Implications of Tax Reforms
The Nigeria Tax Act 2025 is part of a broader effort to reshape fiscal federalism, granting states more financial autonomy and expanding their revenue bases. Analysts note that these reforms could significantly impact governance, infrastructure development, and public services nationwide.
Additionally, under the new tax regime, approximately 95% of Nigerians are exempt from paying taxes, with the burden shifting to higher-income earners. This measure aims to ensure equitable contributions to national development while alleviating pressure on low-income groups.
Starting in January 2026, the Federal Inland Revenue Service will undergo a name change as part of modernization efforts to create a more business-friendly tax system. These changes reflect the government's commitment to fostering economic growth and stability through informed policy-making.
