‘Tax reform bills will lower materials’ costs in construction sector’

CHAIRMAN of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele, has said that the recently signed tax reform bills included provisions that would lower the cost of building materials and stimulate investment in the construction sector.

He stated this at a Building and Construction Industry Forum held in Abuja, themed: ”Nigeria’s Tax Reforms and the Building and Construction Industry: Implications and Opportunities,” pointing out that the  Federal Government is set to introduce tax incentives aimed at reducing the burden on real estate developers and building material suppliers.

He added that the tax incentives were meant to improve access to affordable housing across Nigeria.

Oyedele explained that the tax reform bills included “provisions that would lower the cost of building materials and stimulate investment in the construction sector.

“It will reduce the tax burden, whether you’re buying, building, or selling real estate,” he said.

According to him, the essence was to make life better for everyone and to boost economic activities in the building and construction sector, and by extension, the entire economy.

He emphasized the government’s commitment to creating more accessible mortgage options for Nigerians across all income levels and called for greater collaboration among industry stakeholders to address persistent issues such as multiple taxation.

Minister of Housing and Urban Development, Mr Ahmed Dangiwa, who was represented by Director of Public Building, Mr Temitope Gbemi, highlighted the potential of the tax reforms to integrate the informal economy into the formal construction sector.

He encouraged builders and developers to incorporate capital gains into project planning for better cost documentation and tax planning.

Chairman of the Council of Registered Builders of Nigeria (CORBON), Dr Samson Opaluwa, expressed optimism that the reforms would enhance revenue generation within the sector. He underscored the need for inclusive discussions given the industry’s composition.

He noted that the industry is largely driven by SMEs, which produce about 60 to 70 percent of the country’s housing stock.

However, he pointed out that limited access to finance remained a significant challenge.

Executive Director of the Housing Development Advocacy Network (HDAN), Mr Festus Adebayo, urged the government to provide incentives to developers interested in social housing.

He criticized the high costs, multiple charges, and bureaucratic hurdles that make affordable housing a distant reality.

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