The Council of Registered Builders of Nigeria (CORBON) has called for tax reforms that will support Small and Medium Enterprises (SMEs) and unlock the full potential of Nigeria’s building and construction industry.
Speaking at the maiden edition of the Building and Construction Industry Forum in Abuja, Samson Opaluwah, CORBON chairman, emphasised the urgent need to align Nigeria’s fiscal policies with the realities of a sector that contributes significantly to infrastructure development and job creation.
The conference with the theme, ‘Nigeria’s Tax Reforms and the Building and Construction Industry: Implications and Opportunities,’ was one of the activities marking CORBON’s 35th anniversary. It brought together key stakeholders to examine how the Federal Government’s ongoing tax reforms will affect the building industry, particularly SMEs responsible for 60 to 70 percent of the country’s housing stock.
“As a corporate citizen, CORBON is committed to ensuring the provision of safe and sustainable buildings for national development. However, multiple taxation and limited access to finance continue to stifle the industry,” Opaluwah said.
He noted that while the government’s Renewed Hope Agenda under President Bola Tinubu aims to improve revenue generation through tax reforms, care must be taken not to overburden an industry already grappling with numerous challenges.
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The CORBON chairman said the forum was designed to create space for critical conversations that could inform more inclusive fiscal policies.
He also acknowledged the support of Ahmed Dangiwa, Minister of Housing and Urban Development, and the collaboration with the Housing Development Advocacy Network (HDAN).
“This conversation is crucial. It is about how to grow the industry, support employment, and meet Nigeria’s vast infrastructure needs without suffocating the sector under the weight of taxes”, Opaluwah noted.
Dangiwa highlighted the significant implications and opportunities presented by the Nigeria Tax Bill 2024 for the building and construction industry, praising the choice of the forum’s theme, which aligns with the Federal Government’s economic reform agenda under Tinubu’s Renewed Hope Agenda.
The minister emphasised that Nigeria has long grappled with systemic economic inefficiencies, particularly in the administration of its tax and regulatory systems.
According to him, the recent tax reform initiatives championed by the Tinubu administration reflect a bold shift aimed at repositioning the country’s economy for sustainable growth.
The Nigeria Tax Bill 2024, he said, is a comprehensive legislative effort to harmonise and simplify existing tax laws while addressing structural overlaps and improving revenue mobilisation.
“Crucially, it seeks to support small and medium-sized enterprises (SMEs), many of which drive the building and construction sector by creating a more predictable and inclusive tax environment,” he added.
Recognising the central role of the building industry in employment generation and Gross Domestic Product (GDP) contribution, Dangiwa called for proactive engagement from stakeholders.
He noted that the bill permits the deduction of expenses wholly and exclusively incurred in income generation, such as rent, wages, construction materials, and employee benefits.
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“This provision is expected to ease the tax burden for construction firms that maintain diligent cost documentation and tax planning practices.
“Capital gains from the sale of land and buildings now fall under the tax net, necessitating a rethink in how developers and builders approach project pricing and planning.
“While construction services remain within the Value Added Tax (VAT) framework and are subject to stamp duties, the minister stressed the importance of strong compliance systems to mitigate any potential risks”, he said.
Dangiwa also pointed to the bill’s provisions for economic development tax incentives, which include tax credits and exemptions for sectors deemed critical to national growth.
“The construction sector, with its extensive value chain and labour intensity, stands to benefit from these incentives, particularly if it fulfils criteria related to job creation and the use of locally sourced materials”, Dangiwa stated.
The minister lauded the introduction of presumptive taxation for artisans and subcontractors operating in the informal sector, describing it as a strategic step toward formalisation, financial inclusion, and improved access to credit.
He expressed optimism that these reforms would not only deepen formal sector participation but also improve investor confidence, stimulate public infrastructure investment, and enhance job creation across the construction value chain.
At the policy level, Dangiwa reaffirmed his ministry’s commitment to aligning housing and urban development strategies with fiscal reforms.
He noted that his team is working closely with tax authorities to ensure that real estate and housing investments are backed by transparent, equitable, and investor-friendly policies.
He urged industry players not to view the reforms as obstacles but as blueprints for revitalising the sector.
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Dangiwa also encouraged CORBON to lead advocacy and training efforts to help stakeholders understand and adapt to the changing fiscal landscape.
On his part, Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, said that the ongoing tax reforms in Nigeria will significantly reduce the cost of building materials, ease rent burdens, and improve access to affordable housing across the country.
Oyedele emphasised that the reforms are designed to remove excessive tax burdens across the housing and construction value chain, from materials and construction to property sales and rentals.
“These reforms are about making life easier for Nigerians. They’ll reduce tax pressures whether you are buying, building, or renting. The goal is to stimulate economic activities in construction and, by extension, the broader economy”, Oyedele stated.
