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ABUJA – The House of Representatives has raised concerns over Nigeria’s mounting revenue losses, disclosing that the country forfeits an estimated ₦8 trillion annually to tax incentives, waivers, and concessions granted by the Federal Government.
Chairman of the House Ad-Hoc Committee on the Review of Tax and Export Incentives, Waivers and Exemptions, Hon. James Abiodun Faleke, made this known in a statement outlining the committee’s mandate and ongoing review of fiscal support instruments.
Faleke explained that the committee was constituted following the House resolution (HR.112/11/2025) adopted on November 13, 2025, after an extensive debate on revenue leakages linked to the administration of incentives.
According to him, the 19-member ad-hoc committee has commenced a structured and phased review of tax incentives, export incentives, waivers, exemptions, and other fiscal support mechanisms granted between 2015 and 2025.
“Available data indicate that Nigeria loses an estimated ₦8 trillion annually to such waivers and concessions,” Faleke stated.
He further revealed that between 2023 and 2026, the Federal Government projects a total of ₦12.4 trillion in revenue forgone through tax incentives, even as Nigeria’s tax-to-GDP ratio stands at 10.6 per cent, one of the lowest in Africa.
Faleke described the situation as paradoxical, especially given the country’s pressing fiscal, infrastructure, and development challenges.
“This review follows growing concerns, based on available official data and budgetary reports, that significant public revenues may have been forgone or ineffectively applied under various incentive schemes,” he said.
While acknowledging that such incentives were originally designed to stimulate investment, promote exports, and support strategic sectors of the economy, Faleke noted that the House considered it both necessary and timely to reassess their effectiveness.
According to him, the review will assess the actual economic impact of the incentives, 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 of the assignment, the committee is conducting its work in phases.
The first phase focuses on four priority areas with significant fiscal implications: the Export Expansion Grant (EEG), the RT200 FX Programme, the Pioneer Status Incentive, and selected oil and gas fiscal incentives.
Faleke emphasised 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 support investment and export-led growth.
He added that the committee has requested relevant records from Ministries, Departments, and Agencies and may invite beneficiary companies to provide clarification and documentation where necessary. Such engagements, he assured, would be conducted transparently and in accordance with due process.
“The Committee’s work forms part of the House of Representatives’ broader oversight responsibility and aligns with the Federal Government’s ongoing economic reform efforts,” Faleke said, assuring stakeholders that periodic updates would be provided as the review progresses.
