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The House of Representatives Ad Hoc Committee on the Review of Tax and Export Incentives, Waivers and Exemptions has raised concerns about what it described as massive revenue leakages, estimating that Nigeria loses about N8 trillion annually to concessions and fiscal incentives.
The Chairman of the 19-member panel, James Faleke (APC, Lagos), said the committee has begun a structured and phased investigation into the administration of tax incentives, export grants, waivers and exemptions granted by the federal government between 2015 and 2025.
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The committee was constituted following the adoption of a motion with a mandate to probe revenue losses linked to the schemes and recommend policy and legislative reforms.
“The committee has, accordingly, 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,” Mr Faleke said.
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The lawmaker, who also chairs the House Committee on Finance, said available data show that Nigeria forfeits an estimated N8 trillion yearly through waivers and concessions.
He added that between 2023 and 2026, the federal government projects revenue from tax incentives at N12.4 trillion, while the country’s tax-to-GDP ratio stands at 10.6 per cent, one of the lowest in Africa.
He described the situation as paradoxical, given the country’s fiscal and infrastructure challenges.
“This review follows growing concerns, based on the available official data and budgetary reports, that significant public revenues may have been forgone or ineffectively applied under various incentive schemes, at a time when the nation continues to face pressing fiscal, infrastructure, and development challenges,” he said.
According to him, although the incentives were designed to attract investment, promote exports and support strategic sectors, the House resolved that it was necessary to assess their real economic impact, determine whether they were administered transparently and in line with due process, and ensure they deliver measurable value to the economy.
Phased exercise and intended goals
Mr Faleke said the exercise would be conducted in phases, with the first stage focusing on four priority areas considered to have significant fiscal implications. These are the Export Expansion Grant, the RT200bn FX Programme, the Pioneer Status Incentive and selected oil and gas fiscal incentives.
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He explained that the review is not a witch-hunt or an attempt to undermine legitimate businesses. Rather, he said, it aims to strengthen the administration of incentives, safeguard public funds and restore confidence in policies supporting investment and export-led growth.
The committee, he added, is aware of exporters’ concerns over outstanding obligations under the Export Expansion Grant and has commenced an evidence-based verification process to validate legitimate claims.
As part of its work, the panel has requested records from relevant Ministries, Departments and Agencies (MDAs) and may invite beneficiary companies to provide documentation and clarifications where necessary.
He assured that all engagements would be conducted transparently and in accordance with due process.
Mr Faleke said the review aligns with the House’s oversight responsibilities and supports the federal government’s economic reform efforts under the President’s Renewed Hope Agenda.
He assured stakeholders that the committee would provide periodic updates as the exercise progresses.
