BY GODWIN OBI
The Chairman of the House of Representatives Ad Hoc Committee on the Review of Tax and Export Incentives, Waivers and Exemptions, James Abiodun Faleke, has said Nigeria loses an estimated ₦8 trillion every year to tax waivers and concessions granted by the Federal Government.
In a statement issued in Abuja, Faleke disclosed that between 2023 and 2026, the government projected total revenue forgone from tax incentives at ₦12.4 trillion. He noted that Nigeria’s tax-to-GDP ratio remains low at 10.6 per cent, one of the lowest in Africa.
He described the situation as “paradoxical and concerning,” particularly in light of the country’s fiscal and developmental challenges.
Committee’s Mandate
Faleke recalled that the House of Representatives constituted the 19-member Ad Hoc Committee following a resolution passed in November 2025. The committee was mandated to investigate revenue losses and leakages linked to the administration of tax incentives, waivers, and exemptions, and to recommend policy and legislative reforms.
According to him, the committee has commenced a structured review of the administration and impact of fiscal support instruments granted by the Federal Government between 2015 and 2025.
Focus of the Review
He explained that the review is being conducted in phases, with the first phase concentrating on four priority areas with significant fiscal implications:
- Export Expansion Grant (EEG)
- RT200 FX Programme
- Pioneer Status Incentive
- Selected Oil and Gas fiscal incentives
Faleke emphasised that while such incentives were originally designed to stimulate investment, promote exports, and support strategic sectors, it has become necessary to evaluate their transparency, effectiveness, and economic impact.
“Not a Witch-Hunt”
The lawmaker stressed that the exercise is not intended to target legitimate businesses but to strengthen governance and safeguard public funds.
“This review should not be misconstrued as an attempt to undermine lawful enterprises or government support programmes,” he said. “It is aimed at ensuring that incentives deliver measurable value to the Nigerian economy.”
Exporters’ Concerns
Faleke acknowledged concerns raised by exporters over outstanding obligations under the EEG scheme. He said the committee is undertaking an evidence-based verification process to validate legitimate claims.
Stakeholder Engagement
As part of its work, the committee has requested records from relevant Ministries, Departments and Agencies (MDAs). Faleke added that beneficiary companies may be invited to provide documentation and clarification where necessary.
He assured that all engagements would be conducted transparently and in line with due process.
Commitment to Transparency
Faleke reaffirmed the committee’s commitment to openness, stating that periodic updates would be provided as the review progresses.
The committee’s work, he added, aligns with the House of Representatives’ oversight responsibilities and supports ongoing economic reform efforts aimed at improving fiscal sustainability and policy effectiveness.
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