…N12.4tn Revenue Gone In Three Years
…Beneficiary Firms, MDAs To Face Legislative Review
Daud Olatunji
The House of Representatives has raised the alarm that Nigeria is losing about N8 trillion annually to tax waivers, concessions and exemptions granted to companies and investors across key sectors of the economy.
The Chairman, House Ad-Hoc Committee on the Review of Tax and Export Incentives, Waivers and Exemptions, James Abiodun Faleke, disclosed this on Tuesday, warning that the massive revenue forgone is worsening the country’s fiscal challenges.
Faleke said between 2023 and 2026 alone, the Federal Government projected N12.4 trillion in revenue losses arising from tax incentives, even as Nigeria’s tax-to-GDP ratio remains 10.6 per cent — one of the lowest in Africa.
He explained that the 19-member committee was constituted pursuant to House Resolution HR.112/11/2025 of November 13, 2025, to investigate revenue leakages linked to the administration of tax incentives and recommend necessary legislative and policy reforms.
According to him, the panel has commenced a comprehensive review of tax incentives, export incentives, waivers and exemptions granted between 2015 and 2025 amid mounting concerns that huge public revenues may have been lost at a time the country is grappling with rising debt, infrastructure deficits and fiscal pressures.
Faleke noted that while the incentives were originally introduced to stimulate investment, boost exports and support strategic sectors of the economy, the House considered it imperative to assess their actual economic impact and ensure transparency and accountability in their administration.
“The exercise is not a witch-hunt,” he said, adding that the objective is to strengthen the framework for granting incentives, safeguard public funds and restore public confidence in government support programmes.
He disclosed that the first phase of the review would focus on four critical areas — the Export Expansion Grant, the RT200bn FX Programme, the Pioneer Status Incentive and selected oil and gas fiscal incentives.
The lawmaker said the committee had already requested detailed records from relevant Ministries, Departments and Agencies and might invite beneficiary companies for clarification where necessary.
He assured that the review process would be transparent, evidence-based and conducted in line with due process, stressing that periodic updates would be provided as the exercise progresses.
Nigeria has in recent years faced increasing fiscal strain, with experts repeatedly calling for reforms to improve revenue mobilisation and plug leakages in the system.
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