By: Kehinde Akinpelu, Ilorin.

Kwara-based estate valuer, ESV Babatunde Abiodun, has expressed optimism about the newly introduced Nigerian Tax Act 2025, saying the legislation will significantly reshape real estate practice in the country by boosting accountability and transparency.

Abiodun stated this during an interview with Standard Times in Ilorin, noting that it is important for stakeholders to understand the provisions of the new law and chart a workable path for the future of the real estate industry.

According to him, the Nigerian Tax Act 2025 will enhance transaction transparency through improved documentation and reporting requirements for property sales, thereby strengthening investor confidence in the market.

He added that the transition towards a more formal and transparent real estate environment is expected to generate new revenue streams for the government, especially through Capital Gains Tax, Withholding Tax, and Value Added Tax on real estate related services.

Abiodun further highlighted that the Act incorporates advanced digitalisation of property data, a move he said will reduce corrupt practices and simplify the verification of ownership and transaction history.

He also noted that developers stand to benefit from tax incentives embedded in the Act, particularly those targeted at affordable housing and urban renewal initiatives programmes that are crucial to addressing Nigeria’s widening housing deficit.

However, he cautioned stakeholders to be mindful of the potential rise in transaction costs and the heavier compliance burden that may accompany the new regulatory requirements. The increase in Capital Gains Tax for companies from 10% to 30%, as well as the implications of Withholding Tax on rental income, could pose significant challenges for homeowners, landlords, and investors within the rental market.

Abiodun stressed that effective implementation, stakeholder sensitisation, and continuous engagement will determine the success of the Tax Act 2025, adding that these factors are essential for navigating the complexities of the new tax regime and ensuring a seamless transition toward a more transparent and sustainable real estate sector.

He concluded that the Nigerian Tax Act 2025 represents a major step in transforming the nation’s real estate landscape. With increased transparency, stronger digital frameworks, and collaborative stakeholder participation, the industry stands to benefit significantly from the opportunities the legislation presents.