Eligible taxpayers can now deduct the lower of 20% of their total annual rent or a fixed cap, typically between ₦200,000 and ₦500,000, from their taxable income, provided they present

Effective January 1, 2026, Nigeria’s new rent relief provision will allow tenants to reduce their annual tax bills by deducting a portion of their rent from taxable income. Introduced under the Nigeria Tax Act 2025, this initiative replaces older relief allowances with a more targeted measure aimed at easing the financial strain of housing costs for residents.

Eligible taxpayers can now deduct the lower of 20% of their total annual rent or a fixed cap, typically between ₦200,000 and ₦500,000, from their taxable income, provided they present