Nigeria loses N8trn annually to waivers, concessions – Reps

The House of Representatives Ad-Hoc Committee on the Review of Tax and Export Incentives, Waivers and Exemptions has said Nigeria loses about N8 trillion annually to tax waivers and concessions.

Chairman of the committee, James Abiodun Faleke, disclosed this on Tuesday, noting that between 2023 and 2026, the Federal Government projects N12.4 trillion in revenue forgone from tax incentives, even as the country’s tax-to-GDP ratio stands at 10.6 per cent—one of the lowest in Africa.

Faleke said the 19-member committee was constituted pursuant to House Resolution HR.112/11/2025 of November 13, 2025, to investigate revenue leakages from the administration of incentives and recommend policy and legislative reforms.

He said the panel has commenced a structured review of tax incentives, export incentives, waivers and exemptions granted between 2015 and 2025, amid concerns that significant public revenues may have been lost at a time of mounting fiscal and infrastructure challenges.

According to him, while the incentives were introduced to stimulate investment, promote exports and support strategic sectors, the House deemed it necessary to assess their actual economic impact, ensure transparency in their administration and confirm that they deliver measurable value to the economy.

The first phase of the review, he said, focuses on four key areas: the Export Expansion Grant (EEG), the RT200bn FX Programme, the Pioneer Status Incentive, and selected oil and gas fiscal incentives.

Faleke stressed that the exercise is not a witch-hunt but aimed at strengthening incentive administration, safeguarding public funds and restoring confidence in government support programmes.

He added that the committee has requested records from relevant Ministries, Departments and Agencies and may invite beneficiary companies for clarification, assuring that the process would be transparent and in line with due process.

He said periodic updates would be provided as the review progresses.

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