By Adeyemi David
Chairman of the House of Representatives Ad Hoc Committee on the Review of Tax and Export Incentives, Waivers and Exemptions, James Abiodun Faleke, has disclosed that Nigeria is losing an estimated N8 trillion annually to waivers and concessions granted to organisations and individuals by the Federal Government of Nigeria.
In a statement issued in Abuja, Faleke revealed that between 2023 and 2026, the government projected a total N12.4 trillion in revenue would be forgone through tax incentives, even as the country’s tax-to-gross domestic product ratio stands at just 10.6 per cent, one of the lowest in Africa.
He assured that the committee would conduct periodic reviews and maintain transparency throughout the investigation into revenue leakages linked to the incentive regime.
Faleke recalled that the House constituted the ad hoc committee following the adoption of Resolution HR.112/11/2025 on November 13, 2025, mandating lawmakers to probe revenue losses arising from the administration of incentives and recommend policy and legislative reforms.
According to him, the 19-member committee, which he chairs alongside his role as head of the finance committee, has begun a structured review covering tax incentives, export incentives, waivers, exemptions, and other fiscal support instruments granted by the government between 2015 and 2025.
“Available data indicate that Nigeria loses an estimated N8 trillion annually to such waivers and concessions,” he said, describing the situation as “paradoxical and concerning” given the nation’s fiscal pressures and infrastructure needs.
Faleke noted that although the incentives were initially introduced to stimulate investment, promote exports, and support strategic sectors, the House deemed it necessary to evaluate their actual economic impact, ensure transparency in their administration, and confirm that government support delivers measurable value to the economy.
The first phase of the review will focus on four priority programmes with significant fiscal implications: the Export Expansion Grant, the RT200bn FX Programme, the Pioneer Status Incentive, and selected oil and gas fiscal incentives.
He emphasised that the exercise is not a witch-hunt but aims to strengthen the incentive framework, safeguard public funds, and restore confidence in policies designed to support investment and export-led growth.
Faleke added that the committee has requested records from relevant Ministries, Departments, and Agencies and may invite beneficiary companies for clarification where necessary, stressing that all engagements would be conducted fairly and in line with due process.
The review, he explained, aligns with the economic reform efforts of President Bola Tinubu under the Renewed Hope Agenda, which seeks to build a resilient and competitive economy.
He assured stakeholders and the public that periodic updates would be provided as the exercise progresses.
