Nigeria Loses N8 Trillion Annually to Tax Waivers

The House of Representatives' ad hoc committee, chaired by Hon. Jame Falek, expressed concern over Nigeria's estimated annual loss of N8 trillion due to tax waivers and concessions. This revelation was made during a review of tax export incentives and waivers on Tuesday.

The committee's mandate, established under resolution HR 112/11, is to investigate revenue losses arising from administrative incentives and recommend appropriate policy and legislative reforms. The review will focus on the fiscal support instruments granted by the federal government from 2015 to 2025.

Data indicates that the federal government projects a total revenue forgone of N12.4 trillion from these tax incentives. Despite these losses, Nigeria's tax-to-GDP ratio remains one of the lowest in Africa at 10.6%, raising concerns about the financial challenges the nation faces.

The committee aims to conduct a thorough review to ensure transparency and accountability in the administration of these incentives.