Real Estate Experts Say Nigeria’s New Tax Reforms Could Boost Investment and Housing Demand

By Darasimi Kikelomo

Real estate industry leaders in Nigeria say provisions within the newly enacted 2026 tax reform are expected to strengthen investment flows and stimulate demand for housing and commercial properties. News Agency of Nigeria

Under the revised tax regime, pension contributions, health insurance premiums, and National Housing Fund contributions remain deductible, lowering taxable income for workers and investors. The reforms also offer tax exemptions on certain capital transactions, including the sale of owner-occupied residences within specified limits.

According to Victor Alonge, President of the Nigerian Institution of Estate Surveyors and Valuers, these changes are likely to improve liquidity in the property market and encourage formal investment in housing developments. Market participants say that such incentives can reduce entry barriers for middle-income buyers and support developers’ project pipelines.

“Tax deductions that enhance savings and investment attractiveness can ease financing constraints and increase demand for both residential and commercial properties,” Alonge said in a social media post.

Industry analysts note that while the reforms do not directly alter property taxation, the broader effect on disposable income and investor confidence could lead to incremental gains in construction activity and land acquisition in prime metro areas.

— GLEBM News