Tax Law: Countering Desperate Falsehood with Verifiable Facts
By Zekeri Idakwo Laruba
In moments of national policy transition, societies are often confronted with a familiar test: whether to respond with informed understanding or succumb to the turbulence of misinformation. The ongoing public discourse surrounding the Nigeria Tax Act 2025 has once again exposed a deep structural gap in civic knowledge, one aptly captured by the timeless biblical warning, “My people are destroyed for lack of knowledge” (Hosea 4:6).
This scripture, though ancient, speaks directly to a modern Nigerian reality where viral claims, political rhetoric, and emotionally charged narratives often overshadow facts, statutory provisions, and policy clarity.
Recently, former Minister of Transportation, Rotimi Amaechi, stirred widespread concern during a campaign outing by claiming that the tax law had not yet been implemented, adding President Tinubu was waiting to win the 2027 election before punishing Nigerians with the law.
He alleged that the Tax law would impose a 25 per cent levy on building materials, construction funds, and related transactions. The claim, delivered in a politically charged atmosphere ahead of the 2027 electoral discourse, triggered fear among landlords, contractors, developers, and tenants already grappling with economic pressures.
According to the viral narrative, a contractor receiving ₦100 million for building materials would automatically lose ₦25 million to taxation, an assertion that naturally provoked anxiety within the real estate and construction ecosystem.
Yet, as history and policy analysis repeatedly demonstrate, public panic often thrives in the absence of verified knowledge.
In a swift and evidence-based clarification, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, refuted the claims, describing them as inaccurate and misleading. His intervention was not merely a rebuttal; it was a strategic knowledge-based correction anchored in statutory interpretation and fiscal transparency.
Oyedele clarified that the Nigeria Tax Act 2025 has already commenced and does not impose any 25 per cent tax on building materials, bank balances, or construction funds. Rather than introducing punitive taxation, the Act embeds targeted relief mechanisms designed to reduce housing costs, support developers, and ease financial burdens on renters and small contractors.
Where misinformation projected a tax-heavy regime, the actual law provides incentives, exemptions, and reliefs—demonstrating the widening gulf between perception and policy reality.
The biblical analogy is strikingly relevant. Hosea’s warning was not merely spiritual; it was socio-structural. Ignorance, in governance contexts, leads to poor judgment, misplaced outrage, and policy resistance rooted in misunderstanding rather than substance.
In Nigeria’s digital age, where viral videos often travel faster than legislative documents, the danger is no longer the absence of information but the absence of verified understanding.
When citizens rely on unverified claims instead of reviewing statutory provisions, the result is collective apprehension built on flawed premises. This is precisely the “destruction by ignorance” that Hosea warned against—not physical destruction, but intellectual and civic misdirection.
Contrary to alarmist narratives, the Act contains several provisions aimed at making housing more affordable and stimulating real estate development. Key highlights include VAT exemption on land, buildings, and rent, which directly lowers property-related costs. Contractors can now recover input VAT on materials and services, reducing construction overheads and improving project efficiency.
Furthermore, the law introduces a reduced 2 per cent withholding tax rate on construction contracts, preserving developers’ cash flow and easing financing pressures. Mortgage interest deductions for owner-occupied houses and deductible rental expenses for landlords further reinforce the pro-housing orientation of the reform.
Equally significant is the rent relief provision, allowing individuals to claim up to ₦500,000 or 20 per cent of annual rent as relief, an intervention that increases disposable income for low- and middle-income earners.
These provisions collectively contradict the notion of a punitive 25 per cent construction tax.
From a policy communication standpoint, Oyedele’s consistent clarifications reflect a knowledge-led reform architecture that prioritises transparency over speculation. His approach aligns with global best practices in fiscal reform governance, where stakeholder education is treated as a core component of implementation.
In an environment where economic reforms are often politicised, the role of technocrats becomes indispensable. Oyedele’s interventions demonstrate not only technical competence but also strategic communication discipline—an asset Nigeria’s reform ecosystem urgently requires.
Commending such evidence-based engagement is not mere praise; it is a recognition of institutional responsibility in safeguarding public understanding.
Economic misinformation carries real consequences. When citizens believe false tax claims, investors delay projects, developers inflate prices preemptively, and tenants brace for rent hikes that may never be justified by law. Markets react not just to policies, but to perceptions of policies.
Thus, the spread of inaccurate fiscal claims can inadvertently distort housing markets, investment confidence, and public trust in reform initiatives.
This underscores why civic literacy must evolve alongside policy reforms.
Nigeria stands at a critical reform juncture, where tax restructuring, housing affordability, and economic diversification are interconnected policy priorities. For these reforms to succeed, citizens must transition from reactive consumption of viral claims to proactive verification of legislative facts.
The closing admonition from the Presidential Fiscal Policy and Tax Reforms Committee, “Fact Not Fear”, is therefore more than a slogan. It is a governance philosophy.
Indeed, the Nigeria Tax Act 2025 does not tax bank balances, does not impose a 25 per cent levy on building materials, and does not delay implementation until 2027. Instead, it offers incentives for real estate growth, relief for tenants, and fiscal efficiency for contractors and small businesses.
Hosea 4:6 reminds societies that ignorance is not merely a personal weakness; it is a collective vulnerability. In today’s Nigeria, where reform narratives can be easily distorted, knowledge must function as national capital, guiding discourse, shaping perception, and strengthening democratic engagement.
In this context, the intellectual clarity and policy literacy demonstrated by Taiwo Oyedele deserve commendation. His evidence-based clarification exemplifies how informed leadership can neutralise misinformation and restore confidence in public policy.
Ultimately, the lesson is clear: nations are not destabilised by reforms, but by the ignorance surrounding them. And in the battle between fear and fact, it is knowledge, grounded in law, evidence, and transparency, that must prevail.