Nigeria's N8 Trillion Annual Loss from Tax Breaks Probed

The Nigerian House of Representatives has commenced a comprehensive review of tax incentives and export support schemes, highlighting that Nigeria forfeits approximately N8 trillion annually due to various fiscal concessions. This initiative follows a motion adopted in November 2025, leading to the establishment of a 19-member ad hoc committee tasked with investigating revenue leakage linked to the management of these incentives.

Chairman of the committee, James Abiodun Falek, noted that the federal government is expected to forgo N12.4 trillion in tax revenue from 2023 to 2026 due to these incentives. The committee aims to assess the economic benefits of these incentives and ensure they are applied transparently and in line with due process.

Additionally, the committee will examine the impact of the failure to release capital funds earmarked for the Ministry of Interior, which has been described as a serious blow to project delivery. The committee's work aligns with the federal government's broader economic reform agenda.