Tinubu Removes VAT on Rent, Public Transport, Renewable Energy to Lower Cost of Living
President Bola Ahmed Tinubu has announced the exemption of Value Added Tax (VAT) on residential rent, public transportation, and renewable energy products and services.
The announcement was made during the President’s address commemorating his second year in office.
Speaking during the anniversary broadcast, President Tinubu stated that the policy was designed to alleviate financial pressure on households and promote broader economic stability.
According to him, the exemption takes immediate effect and is part of a broader fiscal plan to create a more inclusive and sustainable economy.
“To ease the burden on ordinary Nigerians, my administration has approved the full exemption of VAT on essential items including residential rents, public transportation services, and renewable energy.
This measure is aimed at directly improving the cost of living and enabling more families to meet their basic needs,” the President said.
The decision to exempt residential rent from VAT is expected to have a significant impact on millions of renters across the country.
Housing advocates have often argued that taxing rent places an undue burden on low- and middle-income earners, especially in urban areas where housing costs are already high.
Public transportation, a critical lifeline for workers and students alike, will also see cost reductions as operators pass on savings to passengers.
With Nigeria’s urban centers heavily reliant on mass transit systems, the removal of VAT from transportation costs is likely to bring immediate relief to daily commuters.
The VAT exemption for renewable energy products such as solar panels, inverters, and related services is expected to accelerate Nigeria’s transition to sustainable energy. With erratic power supply still a major challenge, many homes and small businesses have turned to alternative energy solutions to stay operational.
The removal of VAT will lower the cost barrier for adoption and investment in clean energy technologies.
Energy experts have welcomed the move, stating that it demonstrates the government’s recognition of renewable energy as a key driver of national development and environmental sustainability.
Economists and policy analysts have praised the announcement as a timely intervention that targets key areas of household spending.
They also noted that the policy has the potential to stimulate growth in the housing, transportation, and energy sectors.
Transport unions, landlords’ associations, and renewable energy entrepreneurs have also expressed optimism, urging the government to ensure smooth implementation and continued engagement with stakeholders.
