By Muhammed Abubakar, Reporting
NIGERIA is losing an estimated N8 trillion annually to tax waivers and concessions that are failing to deliver promised economic benefits, a powerful parliamentary committee has revealed.
The House of Representatives Ad-hoc Committee on the Review of Tax and Export Incentives has launched a major investigation into the incentives, alarmed that the fiscal perks are costing the nation billions while doing little to stimulate growth.
Chairman of the Committee, Hon. Dr James Faleke, disclosed the staggering figures in a statement, warning that the nation’s finances are under serious strain despite the generous handouts.
“Available data indicate that Nigeria loses an estimated ₦8 trillion annually to such waivers and concessions,” Faleke said. “Between 2023 and 2026, the federal government projects total revenue forgone from tax incentives at ₦12.4 trillion, while the tax-to-GDP ratio remains at only 10.6%, which is among the lowest in Africa.”
The 19-member committee, which also chairs the powerful Finance Committee, has been tasked with investigating revenue losses and leakages arising from the administration of incentives between 2015 and 2025.
Faleke stressed that while the incentives were originally designed to stimulate investment, promote exports and support strategic sectors, the House has resolved it is “both necessary and timely” to assess their actual economic impact.
“This is paradoxical and concerning, given the financial and fiscal challenges the nation is facing,” he added. “The new tax regime has presented us with an opportunity to look inwards.”
The investigation will focus initially on four priority areas with significant fiscal implications: the Export Expansion Grant (EEG), the RT200bn FX Programme, the Pioneer Status Incentive, and selected Oil and Gas fiscal incentives.
Faleke moved to reassure the business community that the exercise is “not a witch-hunt” and should not be misconstrued as an attempt to undermine legitimate enterprises. Rather, he insisted, it is intended to strengthen the administration of incentives, safeguard public funds, and restore confidence in policies designed to support investment.
The committee has already begun requesting records from relevant Ministries, Departments and Agencies, and will invite companies that have benefited from the incentives to provide clarification and documentation. Such engagements, Faleke promised, will be conducted transparently, fairly, and in accordance with due process.
The review forms part of the House of Representatives’ broader oversight responsibility and supports the Federal Government’s ongoing economic reform efforts under the President’s Renewed Hope Agenda to build a resilient, competitive and productive economy.
Stakeholders and the general public have been assured that periodic updates will be provided as the review progresses.
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