LASG: Commencement of Tax Regime Puts Construction, Real Estate at Inflection Point 

Dike Onwuamaeze 

The Lagos State Government has stated that the coming into effect of the new tax reforms has put the construction and real estate sector at a defining inflection point.

The state government also emphasised that navigating this reform landscape would require a deliberate shift in approach because the era of passive compliance is over. 

The Lagos State Commissioner of Housing, Mr. Moruf Akinderu-Fatai, stated these in his presentation as the special guest at the “Nigerian -British Chamber of Commerce’s (NBCC) Construction and Real Estate Outlook 2026.”

Akinderu-Fatai said: “As of January 1, 2026, when the new tax reforms have taken effect, the 

construction and real estate sector finds itself at a defining inflection point.”

He explained that these reforms are designed to strengthen fiscal sustainability, improve 

compliance, enhance risk management, and align Nigeria’s regulatory 

environment with global best practices.

According to him, “Construction and real estate are not peripheral sectors. They are structural pillars of economic development. They support industrial activity, absorb  labour at scale, stimulate domestic supply chains, deepen capital markets,  and provide the physical foundation for productivity, commerce, and  human dignity. 

“Shelter, after all, is not merely an asset class; it is a social good. The health of this sector therefore has direct implications for  economic stability, social inclusion, and long-term national competitiveness.”

The commissioner explained that at the core of the tax reform is an attempt to improve efficiency, broaden the tax base, and reduce administrative fragmentation. 

He said, “For the construction and real estate sector, taxation intersects with virtually every stage of the value chain: land acquisition, development approvals, construction inputs, corporate income, value-added tax, capital gains, property transactions, and estate management.  The challenge, therefore, is not the existence of taxation, but the clarity, predictability, and  coordination of tax obligations across institutions and tiers of government.”

In his welcome address, the President of NBCC, Mr. Abimbola Olashore, said that the theme of the NBCC Construction & Real Estate Outlook 2026, is “Navigating Reforms, Driving Resilience: Tax, Insurance & the Future of Nigeria’s Construction & Real Estate Sector in 2026,”

Olashore said that the theme captured the reality before us as Nigeria is undergoing significant fiscal and regulatory reforms.