Nigeria Loses ₦8tr Annually To Tax Waivers -Lawmakers

The House of Representatives adhoc Committee on the Review of Tax and Export Incentives, Waivers and Exemptions says Nigeria is losing an estimated ₦8 trillion ($8bn) each year through tax waivers, concessions and other fiscal incentives, as lawmakers begin a fresh review of the schemes.

A 19-member ad hoc committee set up by the House has started examining tax and export incentives granted by the federal government between 2015 and 2025, amid concerns over revenue leakages and weak returns.

In a statement in Abuja, the Chairman of the committe James Faleke, says that the review followed a resolution passed on 13 November 2025 mandating lawmakers to investigate the administration of the incentives and recommend policy and legislative reforms.

He said available data suggest Nigeria forgoes about ₦8 trillion annually through waivers and concessions.

Government projections also estimate that ₦12.4 trillion in revenue will be forgone from tax incentives between 2023 and 2026.

Mr Faleke noted that Nigeria’s tax-to-GDP ratio stands at 10.6%, among the lowest in Africa, describing the situation as “paradoxical and concerning” given the country’s fiscal and development challenges.

The committee said it would assess whether the incentives achieved their objectives of boosting investment, supporting exports and stimulating strategic sectors.

It will also examine whether they were administered transparently and in line with due process.

The first phase of the review will focus on four key areas: the Export Expansion Grant, the RT200bn FX Programme, the Pioneer Status Incentive and selected oil and gas fiscal incentives.

Mr Faleke said the exercise was not intended as a “witch-hunt” against businesses but aimed at strengthening oversight, protecting public funds and restoring confidence in government support programmes.

He added that exporters’ concerns over outstanding obligations under the Export Expansion Grant would be addressed through an evidence-based verification process to validate legitimate claims.

The committee has requested records from relevant ministries, departments and agencies and may invite beneficiary companies to provide clarification where necessary.

It said engagements would be conducted transparently and in accordance with due process.

Lawmakers said periodic updates would be provided as the review progresses, describing the probe as part of the House’s oversight role and support for the government’s wider economic reform agenda.

PR/Oduyemi Odumade