Tinubu Pledges Support for Real Estate Sector, Says Ongoing Reforms Unavoidable

•President gets NIESV grand patron investiture

Emmanuel Addeh in Abuja

President Bola Tinubu yesterday reaffirmed his administration’s commitment to the growth of the real estate sector in Nigeria, noting that ongoing efforts to reform the sector vis-a-vis the tax system were unavoidable.

Speaking in Abuja at the opening of the 55th Annual National Conference of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), the president argued that while the reforms are tough, they are aimed at creating a conducive environment for investment, especially in the real estate sector.

Tinubu, who also got an investiture as the Grand Patron of NIESV was represented at the event tagged: “Transform, Invest, Thrive: Optimising Real Estate Asset Finance and Taxation”, by the Minister of Housing and Urban Development,  Ahmed Dangiwa.

According to the president, recent tax reforms and fiscal policy shifts are strategic efforts to ensure Nigeria’s economic survival and diversification.

Tinubu stated that the reforms aim to create a conducive environment for investment, especially in the real estate sector, which he described as critical to job creation and long-term national stability.

“These policies are not meant to punish Nigerians, but are unavoidable solutions to save the economy from total collapse and ensure that our future is not jeopardised. To prioritise economic diversification, we must open up the space for revenue streams.

“This informed our drive to include policies that enhance income from taxation, ensuring fairness and transparency are not lacking in the process,” the president pointed out.

Describing the reforms as deliberate and strategic, Tinubu stated that it was a courageous and bold move that epitomised his government’s resolve to address the ‘suffocating’ economic challenges that were besetting the nation, with a focus on sectors that can offer inclusive and sustainable growth like the real estate sector.

“Your role as real estate practitioners, specifically estate surveyors and valuers in this process is crucial and indispensable. When we align the proposed tax reform with the theme of your conference, it becomes crystal clear that the Nigerian institution of estate surveyors and valuers is as concerned and interested as other Nigerians in this process.

“Your professional and strategic importance to our tax reform process cannot be overstated. My administration will partner with you in our drive to ensure that the policy objectives of the best tax administration and revenue utilisation are delivered to the benefits of all Nigerians,” he stated.

Also speaking, the Chairman, Federal Inland Revenue Service (FIRS), Dr. Zaccheaus Adedeji, emphasised the need for comprehensive tax reforms to unlock the full potential of Nigeria’s real estate sector.

Adedeji, who was represented by his Chief Economic Adviser, Prof. Mohammed Salisu, described real estate as a vital engine for economic transformation that remains largely under-assessed and under-taxed.

Quoting from the Gross Domestic Product (GDP) report recently released by the National Bureau of Statistics (NBS), he stated that the real estate sector grew by about 15.39 per cent in nominal terms in the Q4 of 2024.

According to the FIRS boss, the sector contributed about N3.7 trillion  to the GDP during the period, which was equivalent to about  5 per cent of GDP, noting that it’s not an insignificant sector. He noted that the sector recently emerged as the third largest sector in Nigeria’s economy.

“With the growth in the population of Nigeria, which is expected to hit about 400 million people by 2050, demand for housing, particularly luxury properties in major cities, is expected to grow further.

“The sector’s value is also being driven by high-net-worth individuals, both Nigerians and expatriates, who are increasingly seeking high-end residences. In addition, it is believed that the ongoing efforts at improving the provisions of accurate geospatial data and the adoption of digital technology, such as the blockchain, the contribution of the real estate sector to the economy is expected to grow considerably.

“The real estate sector is undoubtedly now playing, and will continue to play a central role in Nigeria’s economic transformation. The sector’s growth, I believe, aligns with broader government developmental policies and goals.

“Nevertheless, as the real estate continues to grow, experts have highlighted the strategic importance of government policies, particularly tax policy, in the sustenance of this path of growth,” Adedeji explained.

Earlier in his welcome address, NIESV President, Victor Alonge, commended the federal government for recognising the strategic importance of the real estate sector.

He assured that the conference would deliver a comprehensive communiqué containing actionable solutions and policy recommendations for national development and global best practices.

“ We shall also make the document available to relevant stakeholders for the purpose of using the conclusions for re-appraisal and aligning of real estate practices, strategies, and operations with the best global practices,” he added.