…urges stakeholders’ input

By Kingsley Adegboye 

Housing Development Advocacy Network (HDAN), has held a pivotal online session focused on Nigeria’s newly introduced tax reforms, specifically examining their potential effects on the real estate sector and affordable housing. 

The session, titled “Nigeria’s New Tax Reforms: What Effect on the Real Estate Sector?” was led by HDAN’s Executive Director, Festus Adebayo, and brought together industry experts, including Dr. Abiodun Adedipe, Founder and Chief Consultant of B. Adedipe Associates Limited (BAA Consult). 

Adebayo acknowledged the positive strides the reforms are intended to bring, such as simplifying Nigeria’s complex tax structure and reducing redundant taxes. However, he emphasized a critical gap in the reforms such as the lack of specific provisions to support affordable housing development. 

“While we welcome these reforms as an effort to ease tax pressures, there is an undeniable void when it comes to affordable housing,” Adebayo said. According to him, “This segment of our housing market will struggle to grow without targeted tax incentives, especially as Nigeria faces a substantial housing deficit.” 

HDAN boss underscored the need for advocacy, encouraging stakeholders to rally together and push for tax reliefs on essential materials for affordable housing. 

“For years, advocates have called for meaningful tax breaks on construction inputs that could reduce costs for low-income housing projects,” Adebayo explained, insisting that “Without these adjustments, we risk losing an opportunity to make a genuine impact on housing affordability for millions of Nigerians.

“HDAN’s commitment to this cause reflects its belief that affordable housing is central to economic stability and community well-being,” he added.

He called on stakeholders to submit formal input to the National Assembly as the tax reform bills continue through the legislative process. 

“This reform package is a promising foundation, but we need a coordinated effort to ensure that affordable housing is not left behind,” Adebayo stated, pointing out that “HDAN is ready to work hand-in-hand with policymakers, and we urge every player in the sector to join us in advocating for tax policies that make housing accessible for all Nigerians.”

During the discussions, participants also raised concerns over the absence of tax incentives on key inputs like land acquisition and urban infrastructure essential components that contribute significantly to the overall cost of housing. Adebayo therefore called on the government to consider these elements, stating, “If we’re serious about creating a sustainable housing model, we must address the foundational costs of land and infrastructure, which drive up the final price of homes.” 

He further suggested public-private partnerships to support urban infrastructure, thereby creating a more favorable environment for affordable housing initiatives.

Dr. Adedipe also shed light  on the reforms’ overall economic direction, noting that the shift towards a progressive tax structure is in the right direction. 

While this is a welcome move that aligns with global tax standards by increasing taxes on wealthier individuals and corporations, Adebayo stressed that the approach must be balanced with tangible support for the housing sector’s unique challenges. 

He reiterated that the real estate market needs a supportive tax structure to ensure it can thrive alongside other sectors impacted by the reforms.

HDAN’s robust call to action aims to unite stakeholders under a shared vision of making housing accessible and affordable. 

“This is not merely about supporting the real estate sector; it’s about recognizing housing as a basic need and a pillar of economic stability,” Adebayo emphasized. 

He also highlighted HDAN’s commitment to work closely with legislators to integrate provisions that would help alleviate Nigeria’s housing challenges. 

“The housing sector plays a pivotal role in national growth, and we must make our voices heard to shape a tax policy that truly supports the needs of Nigerians,” Adebayo stated.

The conference underscored HDAN’s role as an advocate and mobilizer within the housing industry, showcasing a unified demand for more inclusive reforms with plans to engage further with legislative bodies to ensure that affordable housing and urban development receive the attention they deserve.

Broadcast live on Housing TV Africa, the session provided a platform for experts and stakeholders to assess the tax reforms and urge for key adjustments to benefit affordable housing.