Reps Probe Tax Breaks, Export Incentives, Says Nigeria Loses N8trn Annually

• Capital budget deadlock: NASS committee faults zero funding release to interior ministry

Juliet Akoje in Abuja

The House of Representatives has begun a comprehensive review of how tax incentives, export support schemes, waivers, exemptions, and other fiscal concessions granted by the federal government were administered between 2015 and 2025, as well as their overall impact on the economy.

This comes as the Joint Committee of the Senate of Nigeria and the House of Representatives voiced strong dissatisfaction over the failure to release capital funds earmarked for the Federal Ministry of Interior, describing the situation as a serious blow to project delivery and institutional efficiency.

The Chairman of the Committee, James Abiodun Faleke, disclosed moves to review tax incentives and others yesterday.

He recalled that following the adoption of a motion in November 2025, the House set up a 19-member Ad-hoc Committee tasked with probing revenue leakages and losses linked to the management of the incentives, with a mandate to recommend suitable legislative and policy reforms.

According to him, existing data suggest that Nigeria forfeits about N8 trillion every year through waivers and concessions.

Faleke, explained that projections showed the federal government expects to forgo about N12.4 trillion in tax revenue between 2023 and 2026 due to incentives, while the country’s tax-to-GDP ratio remains just 10.6 percent. This, he said, was one of the lowest on the continent.

He described the situation as troubling and contradictory, particularly in view of the country’s fiscal pressures, noting that the emerging tax regime presents an opportunity for reassessment.

He added that the review was prompted by rising concerns drawn from official data and budget reports that large amounts of public revenue may have been lost or poorly utilised through incentive programmes, even as the nation grapples with serious fiscal, infrastructure, and developmental needs.

The lawmaker stressed that although the incentives were initially introduced to attract investment, boost exports, support key sectors, and expand the economy, the House believed they were both appropriate and necessary to scrutinise how they were implemented, their economic outcomes, and any irregularities associated with them.

He further stated that the Committee would examine the real economic benefits of the incentives, verify whether they were applied transparently and in line with due process, and ensure that government interventions produce measurable returns for the Nigerian economy.

Faleke noted that due to the wide scope and complexity of the assignment, the Committee would carry out the exercise in stages.

He explained that the first phase would concentrate on four major areas with substantial fiscal and economic consequences: The Export Expansion Grant, the RT200bn FX Programme, the Pioneer Status Incentive, and selected fiscal incentives in the oil and gas sector.

He emphasised that the exercise was not intended to target businesses or dismantle legitimate government programmes, but rather to improve how incentives are managed, protect public resources, and rebuild trust in policies meant to promote investment and export-driven growth.

Faleke also acknowledged exporters’ concerns over unpaid obligations under the Export Expansion Grant, saying the Committee was conducting a fact-based verification process to confirm valid claims and ensure they are properly resolved.

As part of its investigation, the Committee has requested documents from relevant Ministries, Departments, and Agencies and may invite beneficiary companies to supply explanations and records where necessary.

He assured that such interactions would be transparent, fair, and consistent with due process, adding that the exercise forms part of the House’s constitutional oversight duties and aligns with the federal government’s broader economic reform drive, including the President’s Renewed Hope Agenda aimed at building a more resilient, competitive, and productive economy.

The House, he said, has pledged to keep stakeholders and the public informed through periodic updates as the review continues.

Meanwhile, the Joint Committee of the Senate of Nigeria and the House of Representatives voiced strong dissatisfaction over the failure to release capital funds earmarked for the Federal Ministry of Interior, describing the situation as a serious blow to project delivery and institutional efficiency.

Chairman of the Senate Committee, Adams Oshiomhole, together with other members of the joint panel, raised the issue during a budget defence session in Abuja, lamenting that capital allocations approved for the ministry in both 2024 and 2025 had not been disbursed.

Minister of Interior, Olubunmi Tunji-Ojo, told lawmakers that the ministry recorded a zero-percent capital budget release for two straight years.

He explained that none of the capital funds approved for the ministry in the 2024 and 2025 fiscal cycles had been released, a development he said had seriously constrained project execution and halted major infrastructure programmes within the ministry.

The minister, a former lawmaker, noted that performance on capital projects throughout the review period remained at zero percent entirely because funds were not made available.

Tunji-Ojo added that although the ministry had planned multiple strategic projects across its agencies, implementation could not begin due to the absence of capital releases, despite the National Assembly’s approvals.

Notwithstanding the financial constraints, he assured legislators that the ministry had maintained fiscal discipline by consistently remitting its Internally Generated Revenue into the federation’s Consolidated Revenue Fund in line with legal requirements.

Members of the joint committee expressed frustration over what they described as persistent delays in releasing approved funds to Ministries, Departments and Agencies, warning that such setbacks weaken government institutions and hinder performance.

They stressed that while the National Assembly fulfills its constitutional responsibility by passing budgets, it expects the executive to ensure prompt releases so that implementation can proceed.

The lawmakers nevertheless advised ministry officials to focus on projects based on approved priorities and strategic relevance in order to avoid abandoned projects in different parts of the country.

Agencies under the ministry that participated in the defence included the Nigeria Immigration Service, the Nigerian Correctional Service, the Nigeria Security and Civil Defence Corps, and the Federal Fire Service.

The situation has intensified worries about persistent gaps in federal budget implementation and the broader impact on service delivery in key security and internal administration institutions.