President of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Mr. Victor Alonge, says Nigeria’s new tax reforms will positively impact the real estate sector from Jan. 1, 2026.
Alonge spoke on Tuesday, December 30, 2025, in Lagos during a press briefing marking the signing of a Memorandum of Understanding between QShelter Ltd and M.I. Okoro and Associates.
The firms signed the MoU to jointly market housing units under the Federal Government’s Renewed Hope Housing Schemes across Abuja, Kano and the Lagos Coastal Road corridor.
Speaking at the event, Alonge said the reforms would boost real estate investment and expand home ownership opportunities nationwide.
“The new tax law is actually a positive thing for the real estate sector,” Alonge said.
He explained that the law exempts several small-scale businesses within the construction value chain, describing it as a model adopted by advanced economies for growth.
Alonge added that value added tax had been removed for the informal segment of the construction industry under the new law.
He said although large construction firms would still pay VAT on some materials, provisions exist to offset costs through other incentives, including local production.
According to him, savings from the reforms will strengthen mortgage financing and improve access to housing for Nigerians.
“So it’s something that we need to see as positive for our industry,” Alonge said.
He described the law as one of the most beneficial for Nigerian workers, citing broad tax exemptions for low-income earners.
Alonge said it was encouraging that about 90 per cent of workers would no longer pay taxes due to the higher income threshold.
Also speaking, Mr. Adegbenga Alamu, Chief Operating Officer, QShelter Ltd., said cheaper debt servicing would stimulate real estate investment under the new regime.
“The interest paid on a mortgage is now deductible before tax computation, making borrowing cheaper for home buyers.
“For those of us from banking, if I have cash, I will borrow. Debt is cheaper and better with the new law,” Alamu said.
By Grace Alegba