The House of Representatives has lamented that Nigeria losses an estimated ₦8 trillion annually to fiscal waivers and concessions
The House of Representatives’ ad-hoc Committee on the Review of Tax and Export Incentives, Waivers and Exemptions has raised concern that Nigeria loses an estimated ₦8 trillion annually to fiscal waivers and concessions.
Chairman of the committee, Rep. James Abiodun Faleke, disclosed this in a statement, assuring that the panel will conduct periodic reviews of the exercise and ensure transparency throughout the investigation.
Faleke recalled that on November 13, 2025, the House of Representatives debated the matter extensively, following which it constituted the 19-member committee pursuant to Resolution HR.112/11/2025.
The committee was mandated to investigate revenue losses and leakages arising from the administration of tax and export incentives, waivers and exemptions, and to recommend appropriate policy and legislative reforms.
According to him, the House was deliberate in selecting the committee’s membership, appointing the Chairman of the House Committee on Finance to lead the assignment due to its fiscal sensitivity.
The committee has since 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 per cent, one of the lowest in Africa,” Rep. Faleke said.
He described the situation as paradoxical and worrisome, especially in view of the country’s prevailing fiscal challenges, noting that ongoing tax reforms present an opportunity for government to reassess its incentive framework.
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Faleke explained that the review was prompted by growing concerns from official data and budgetary reports suggesting that substantial public revenues may have been forgone or ineffectively utilised under various incentive schemes, at a time when the nation faces significant fiscal, infrastructure and development pressures.
While acknowledging that the incentives were originally introduced to stimulate investment, boost exports and support strategic sectors, he said the House resolved that it was necessary 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 scope and complexity of the task, he said the committee is conducting the review in phases, with the first phase focusing on four priority areas with major fiscal and economic implications: the Export Expansion Grant, the RT200bn FX Programme, the Pioneer Status Incentive, and selected oil and gas fiscal incentives.
Faleke stressed that the exercise is not a witch-hunt nor an attempt to undermine legitimate businesses or government support programmes. Rather, he said, it is aimed at strengthening the administration of incentives, safeguarding public funds and restoring confidence in policies designed to drive investment and export-led growth.
He added that the committee recognises exporters’ concerns over outstanding obligations under the Export Expansion Grant and is undertaking an evidence-based verification process to ensure that legitimate and properly substantiated claims are validated and addressed.
As part of its work, the committee has requested records from relevant ministries, departments and agencies, and will invite beneficiary companies where necessary to provide clarification and documentation. Such engagements, Faleke assured, will be conducted transparently, fairly and in accordance with due process.
He said the review aligns with the House of Representatives’ broader oversight mandate and supports the Federal Government’s ongoing economic reform efforts under the President’s Renewed Hope Agenda.
Faleke assured stakeholders and the general public that the House will provide periodic updates as the review progresses.
