Reps launch probe into tax waivers as Nigeria loses over N8trn annually

By Christiana Ekpa

The House of Representatives has commenced a comprehensive review of tax incentives, export grants, waivers, exemptions and other fiscal support schemes granted by the Federal Government between 2015 and 2025, amid revelations that Nigeria loses more than N8 trillion annually to such concessions.
Chairman of the 19-member Ad-hoc Committee, Hon. James Abiodun Faleke, disclosed this on Tuesday, stating that available data indicates massive revenue leakages from the administration of these incentives.
The committee was constituted in November 2025 following a House resolution mandating it to investigate revenue losses arising from tax incentives and recommend appropriate policy and legislative reforms.
According to Faleke, between 2023 and 2026 alone, the Federal Government projects total revenue forgone from tax incentives at N12.4 trillion, even as Nigeria’s tax-to-GDP ratio stands at just 10.6 percent — one of the lowest in Africa.
“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,” Faleke said.
He explained that the review was prompted by growing concerns from official data and budgetary reports suggesting that significant public revenues may have been either forgone or ineffectively applied under various incentive schemes at a time the country faces mounting fiscal, infrastructure and development pressures.
While noting that the incentives were originally introduced to stimulate investment, promote exports, and support strategic sectors of the economy, Faleke stressed that the House deemed it necessary and timely to examine their implementation and actual economic impact.
The committee, he said, will assess whether the incentives were transparently administered in line with due process and whether they delivered measurable value to the Nigerian economy.
Given the scope of the assignment, the review will be conducted in phases. The first phase will focus on four key areas with significant fiscal implications: the Export Expansion Grant (EEG), the RT200bn FX Programme, the Pioneer Status Incentive, and selected oil and gas fiscal incentives.
Faleke clarified that the exercise is not a witch-hunt.
“This is not an attempt to undermine legitimate businesses or government support programmes. Rather, it is to strengthen the administration of incentives, safeguard public funds, and restore confidence in policies designed to support investment and export-led growth,” he said.
He also acknowledged concerns from exporters over outstanding obligations under the Export Expansion Grant, noting that the committee is undertaking an evidence-based verification process to validate legitimate claims.
As part of its mandate, the committee has requested relevant records from Ministries, Departments and Agencies and may invite beneficiary companies to provide documentation and clarification where necessary. Such engagements, he assured, will be conducted transparently and in accordance with due process.
Faleke added that the probe aligns with the House’s oversight responsibility and supports the Federal Government’s economic reform drive under the President’s Renewed Hope Agenda aimed at building a resilient and competitive economy.
He assured stakeholders and the public that periodic updates will be provided as the review progresses.