Nigeria Loses N8 Trillion Annually to Tax Waivers

The House of Representatives has revealed that Nigeria loses approximately N8 trillion annually due to tax waivers and concessions. This disclosure was made by James Abiodun Falek, the chairman of the House ad hoc committee, during a session on Tuesday.

The committee, consisting of 19 members, was constituted following House Resolution HR 112 on November 13, 2025, to investigate revenue leakage from tax incentives and recommend policy reforms. The federal government is projected to forgo N12.4 trillion in revenue from 2023 to 2026 due to these tax incentives.

Falek noted that Nigeria's tax-to-GDP ratio stands at 10.6 percent, one of the lowest in Africa. The committee's review will focus on four key areas, including export expansion grants and fiscal incentives.

Falek emphasized that the exercise is not a witch hunt but aims to strengthen the administration of incentives and safeguard public funds. The committee has requested relevant ministries and agencies to provide records and ensure transparency in the process.