Victor Alonge, president of the Nigerian Institution of Estate Surveyors and Valuers, says Nigeria’s new tax reforms will positively impact the real estate sector from January 1, 2026.

Mr Alonge spoke on Tuesday 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.

Mr 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,” Mr Alonge said.

He explained that the law exempts several small-scale businesses in the construction value chain, describing it as a model adopted by advanced economies to spur growth.

Mr Alonge added that the new law removed value-added tax for the informal segment of the construction industry.

He said that 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 Nigerians’ access to housing.

“So it’s something that we need to see as positive for our industry,” Mr Alonge said.

He described the law as one of the most beneficial for Nigerian workers, citing broad tax exemptions for low-income earners.

Mr Alonge said it was encouraging that about 90 per cent of workers would no longer pay taxes due to the higher income threshold.

Adegbenga Alamu, COO of 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 would borrow. Debt is cheaper and better with the new law,” Mr Alamu said.

(NAN)