Nigeria loses ₦8trn annually to concessions, waivers – Reps

2026-02-17 - 17:47

By Gift ChapiOdekina The House of Representatives Ad-Hoc Committee on the Review of Tax and Export Incentives, Waivers, and Exemptions has revealed that Nigeria loses an estimated ₦8 trillion annually through various tax waivers and concessions. James Faleke, chairman of the committee, disclosed this in a statement, emphasizing that the committee would ensure transparency and periodic reviews of the processes involved. “The House debated this matter with great concern on the 13th of November, 2025, and subsequently formed an Ad-Hoc Committee under Resolution HR.112/11/2025 to investigate the revenue losses and leaks arising from these incentives. The committee is also tasked with recommending necessary policy reforms,” Faleke explained. The committee, consisting of 19 members, is chaired by Hon. James Abiodun Faleke, who also chairs the Finance Committee in the House of Representatives. Faleke highlighted the committee’s intention to conduct a thorough, structured review of the administration and impact of federal tax incentives, export incentives, waivers, and exemptions from 2015 to 2025. “Available data indicate that Nigeria loses about ₦8 trillion annually due to these waivers and concessions. For the period between 2023 and 2026, the federal government has projected a total revenue forgone from tax incentives at ₦12.4 trillion, while the country’s tax-to-GDP ratio remains at just 10.6%, one of the lowest in Africa,” he noted. The committee chairman expressed concern over these figures, particularly given Nigeria’s ongoing fiscal and developmental challenges. “This situation is paradoxical and troubling, especially as the country faces increasing economic pressures. The current tax regime offers us an opportunity to re-evaluate the situation,” he added. The review is prompted by growing concerns that public revenues may have been ineffectively allocated or lost due to mismanagement of various incentive schemes at a time when the nation is facing severe infrastructure and development challenges. “While these incentives were intended to promote investment, stimulate exports, and support strategic sectors, we have resolved to assess their actual economic impact and determine whether they were administered transparently and according to due process,” Faleke explained. “The objective is to ensure that government support programs truly deliver measurable value to Nigeria’s economy.” The first phase of the committee’s review focuses on four priority areas with significant fiscal implications: Export Expansion Grant (EEG) RT200bn FX Programme Pioneer Status Incentive Selected oil and gas fiscal incentives Faleke clarified that the exercise is not a witch-hunt and should not be perceived as an attempt to undermine legitimate businesses or government support initiatives. Instead, it aims to strengthen the administration of these incentives, safeguard public funds, and restore confidence in policies promoting export-led growth and investment. “The committee is particularly aware of concerns regarding outstanding obligations under the Export Expansion Grant and is conducting an evidence-based verification process to ensure that legitimate claims are substantiated and addressed appropriately,” he assured. To support the review, the committee has requested relevant records from Ministries, Departments, and Agencies and will, where necessary, invite companies benefiting from these incentives for clarification and documentation. All interactions will be conducted transparently and in accordance with due process. This review is part of the House of Representatives’ broader oversight responsibilities and supports the Federal Government’s ongoing economic reform initiatives, including the President’s Renewed Hope Agenda, which aims to build a more resilient and competitive economy. Faleke assured the public and stakeholders that periodic updates would be provided as the review progresses. Vanguard News