President Bola Ahmed Tinubu’s new tax law is reshaping discussions around property ownership in Nigeria. The legislation, aimed at streamlining the tax system and improving government revenue, is expected to influence how property owners, investors, and developers engage with the real estate market.
According to Olaoluwa Awolaja, Founder Pave Prime Realty, the real estate sector stands to benefit if the government channels the revenue into infrastructure and social development. “Efficient tax systems can drive infrastructure and property growth,” Awolaja said. “When the government invests in roads, bridges, and public utilities, property values increase and investment flows to areas with better amenities.”
A central feature of the law is the push for transparency in property taxation and valuation. By formalising these processes, the government aims to reduce irregularities in collection and curb practices that previously undermined trust in the system. Awolaja explained that “greater transparency builds investor confidence and opens the market to both domestic and international players.”
The legislation also seeks to encourage fairness in property ownership. By requiring all owners to meet their tax obligations, the system discourages speculative practices. This, Awolaja noted, could promote more sustainable urban planning and higher-quality development. “When property taxation is equitable, it reduces unhealthy speculation and strengthens long-term market stability,” he said.
The new revenue streams may further support social housing and mortgage subsidies. These programmes could expand access to affordable homes and stimulate demand within the housing market. Awolaja pointed out that “government investment in housing support creates opportunities for more Nigerians to own property and can drive economic activity across the sector.”
Another area of focus is property valuation. More accurate and consistent methods can reduce disputes between owners and government agencies. This, in turn, improves efficiency in the real estate market. “Fairer valuation processes help avoid conflicts and make the system more predictable for all stakeholders,” Awolaja stated.
Awolaja believes the reforms may also reduce volatility in property values by discouraging short-term speculation. This shift towards long-term investment could create a more resilient market, capable of withstanding wider economic pressures.
Awolaja concluded that while the transition will require adjustment, the tax law presents opportunities for growth. “The potential for infrastructure investment, stronger regulation, and sustainable development makes this an important step for Nigeria’s property sector,” he said.
