The Federal Government has dismissed claims that the Nigeria Tax Act 2025 introduces a 25 per cent levy on building materials, construction funds, or bank balances, describing the allegation as false and misleading.
The clarification was issued on Sunday by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, following a viral video in which former Minister of Transportation, Rotimi Amaechi, warned that the new tax law would worsen economic conditions if the ruling party remains in power beyond 2027.
Speaking at a public gathering, Amaechi claimed that payments for building materials would attract an automatic 25 per cent charge, a cost he said would ultimately be transferred to tenants and property buyers.
“The tax law is that if I pay you N100 million for your building materials, automatically N25 million will leave your account,” Amaechi said. “If you are a landlord and building a house, you will charge 25 per cent extra because you won’t bear it alone.”
Reacting in a statement shared on Sunday, Oyedele rejected both the claim of a new levy and the assertion that the tax law would only take effect in 2027.
“We are aware of a recent video claiming that the new tax laws will commence in 2027 and alleging the imposition of a 25 per cent tax on funds for building materials and other transactions,” he said. “Both claims are incorrect.”
According to Oyedele, the Nigeria Tax Act 2025 has already taken effect and does not contain any provision imposing a 25 per cent charge on construction-related transactions, building materials, or similar payments.
He urged Nigerians to disregard misinformation about the tax reforms, stressing that the objective of the new law is to simplify the tax system, promote economic growth, and reduce the burden on businesses and citizens.
