ADVERTISEMENT

ADVERTISEMENT

By Gloria Ikibah

The House of Representatives has decried that Nigeria loses about N8 trillion annually due to waivers and concessions.

Chairman Ahoc Committee on the Review of Tax and Export Incentives, Waivers and Exemptions, Rep. James Faleke, revealed this in a statement, assuring that periodic review of the exercise will be given and the committee will be transparent in its probe.

He said: “You will recall that on the 13th, the House debated the above motion with vigour and serious concern. Accordingly, the House constituted an Ad Hoc Committee pursuant to Resolution HR.112/11/2025 of 13 November 2025, with a mandate to investigate revenue losses and leakages arising from the administration of these incentives and to recommend appropriate policy and legislative reforms.

“This 19-Member Ad-Hoc Committee is chaired by no less a personality than Rt. Hon. James Abiodun Faleke, who also chairs the Committee on Finance. The House was intentional about its membership.

“The Committee has, accordingly, commenced a structured review of the administration and impact of tax incentives, export incentives, waivers, exemptions, and other fiscal support instruments granted by the Federal Government between 2015 and 2025.

“Available data indicate that Nigeria loses an estimated ₦8 trillion annually to such waivers and concessions. Between 2023 and 2026, the federal government projects total revenue forgone from tax incentives at ₦12.4 trillion, while the tax-to-GDP ratio remains at only 10.6%, which is among the lowest in Africa.

“This is paradoxical and concerning, given the financial and fiscal challenges the nation is facing. The new tax regime has presented us with an opportunity to look inwards”.

The committee Chairman said the review was as a result of increasing concerns, based on the available official data and budgetary reports, that significant public revenues may have been forgone or ineffectively applied under various incentive schemes, at a time when the nation continues to face pressing fiscal, infrastructure, and development challenges.

“While these incentives were originally designed to stimulate investment, promote exports, support strategic sectors, and grow the economy, the House has resolved that it is both necessary and timely to:Assess their actual economic impact;
• Determine whether they were administered transparently and in line with due process; and
• Ensure that Government support delivers measurable value to the Nigerian economy.

“Given the breadth and complexity of the subject matter, the Committee is conducting its work in phases. The first phase of the review focuses on four priority areas with significant fiscal and economic implications:

“The Export Expansion Grant (EEG); The RT200bn FX Programme; The Pioneer Status Incentive; and
Selected Oil and Gas fiscal incentives”, he added.

Faleke noted that the exercise is not a witch-hunt and should not be misconstrued as an attempt to undermine legitimate businesses or government support programmes.

“Rather, it is intended to strengthen the administration of incentives, safeguard public funds, and restore confidence in policies designed to support investment and export-led growth.

“In particular, the Committee recognises the concerns of exporters regarding outstanding obligations under the Export Expansion Grant and is undertaking an evidence-based verification process to ensure that legitimate and duly substantiated claims are validated and appropriately addressed.

“As part of its work, the Committee has requested records from relevant Ministries, Departments, and Agencies and will, where necessary, invite companies that have benefited from these incentives to provide clarification and documentation. Such engagements will be conducted transparently, fairly, and in accordance with due process.

“The Committee’s work forms part of the House of Representatives’ broader oversight responsibility and supports the Federal Government’s ongoing economic reform efforts, including the objectives of the President’s Renewed Hope Agenda to build a resilient, competitive, and productive economy.

“The House assures stakeholders and the general public that periodic updates will be provided as the review progresses”, he promised.