As Nigeria moves into full enforcement of the Nigeria Tax Act 2025, real estate and construction sector voices are beginning to weigh in on what the reform will actually mean for an industry long defined by informal transactions, fragmented compliance, and chronic housing shortages. Among them is Oluwabusuyi Adonis Fakanlu, the architect, project management specialist, and author of Sustainable Real Estate Development in Africa, who argues the reforms represent far more than a fiscal adjustment — they signal an attempt to formalise, and ultimately strengthen, one of Nigeria’s most consequential industries.
“The central question for this industry is no longer whether taxation will affect us — it’s how we adapt strategically while staying profitable and sustainable,” Fakanlu says. “That shift in framing matters. Too many stakeholders are still stuck asking the wrong question.”
On the VAT Exemption
Fakanlu points to the removal of Value Added Tax on land, buildings, and rent as the most consequential single change in the new law. Citing guidance from the Presidential Fiscal Policy and Tax Reforms Committee, he notes that buyers of land and completed buildings are now exempt from VAT obligations, as is residential and commercial rent.
