Rotimi Amaechi, former minister of transportation, sparked controversy in a viral video. He claimed the Nigeria Tax Act 2025 imposed a 25 percent levy on funds for building materials. Amaechi stated the laws would start in 2027.
He said, “If you are buying cement or any building material, they will deduct 25 percent from that money.” Additionally he alleged the Act taxed bank balances and business expenses at that rate.
Federal Government’s Rebuttal
Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, countered these claims on X. He clarified the Act contained no such provisions.
Oyedele stated, “Both claims are incorrect. Contrary to the misinformation seeking to create fear, panic and disaffection, the Nigeria Tax Act 2025 has already commenced and does not impose a 25% tax on construction funds, bank balances, or business expenses.”
Furthermore.he emphasized the government aimed to reduce housing costs through exemptions.
Exemptions and Tax Reforms
The Act exempted essential building materials from value added tax and withholding tax. This move supported affordable housing. Oyedele explained the 25 percent rate applied only to top personal income tax for earners above N100 million annually.
However it did not affect transactions or materials directly. Meanwhile the clarification addressed public concerns amid ongoing tax reform debates.
Broader Context and Reactions
The tax reforms overhauled Nigeria’s system to eliminate duplications and broaden the base. Civil society groups earlier urged clarity on implementation. Meanwhile a Federal High Court upheld the laws despite protests. Public reactions on social media varied, with some questioning the government’s denials.
Future Implications
The Federal Government stressed the Act promoted economic growth. Oyedele noted it lowered costs for construction. Thus, the rebuttal aimed to dispel fears and foster understanding of the reforms.
𝐂𝐥𝐚𝐫𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧: 𝐓𝐡𝐞 𝐍𝐢𝐠𝐞𝐫𝐢𝐚 𝐓𝐚𝐱 𝐀𝐜𝐭 2025 𝐡𝐚𝐬 𝐂𝐨𝐦𝐦𝐞𝐧𝐜𝐞𝐝 𝐚𝐧𝐝 𝐃𝐨𝐞𝐬 𝐍𝐎𝐓 𝐈𝐦𝐩𝐨𝐬𝐞 𝐚 25% 𝐓𝐚𝐱 𝐨𝐧 𝐁𝐮𝐢𝐥𝐝𝐢𝐧𝐠 𝐌𝐚𝐭𝐞𝐫𝐢𝐚𝐥𝐬 𝐨𝐫 𝐅𝐮𝐧𝐝𝐬
We are aware of a recent video claiming that the new tax laws will commence… pic.twitter.com/KLD2JunhIK— Taiwo Oyedele (@taiwoyedele) February 15, 2026