Reps begin review of tax incentives, waivers amid N8trn annual loses

The House of Representatives Ad-hoc Committee investigating revenue loses and leakages has 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.

Abiodun Faleke, chairman of the Committee, who said this on Tuesday disclosed that available data has indicated that Nigeria loses an estimated N8 trillion annually to waivers and concessions.

It could be recalled that, the House had after a resolution on a motion in November 2025 constituted a 19-member ad-Hoc Committee to investigate revenue losses and leakages arising from the administration of these incentives and recommend appropriate policy and legislative reforms.

The chairman noted that the review follows growing 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.

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He explained that between 2023 and 2026, projected total revenue forgone from tax incentives stood at N12.4 trillion, while the tax-to-GDP ratio remains at only 10.6%, which is among the lowest in Africa.

According to him, 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,” he said.

The lawmaker added that, while the incentives were originally designed to stimulate investment, promote exports, support strategic sectors, and grow the economy, the House resolved that it is both necessary and timely to investigate their implementation, its impacts on the economy and help address any anomaly.

He further informed that, the Committee will 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.

“The first phase of the review focuses on four priority areas with significant fiscal and economic implications; he Export Expansion Grant (EEG); the RT200bn FX Programme; the Pioneer Status Incentive and elected Oil and Gas fiscal incentives.

“This 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”, he explained.

He added that the Committee has recognised 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,” Faleke explained.