Reps Bemoan Annual Lose Of N8trn To Concessions, Waivers

The House of Representatives ad hoc committee on the review of tax and export incentives, waivers and exemptions, has lamented the country annual lose of about N8 trillion to waivers and concessions.
Chairman of the committee, Hon. James Faleke, who made this feeling known in a statement assured that the panel will continue to give periodic review of the exercise and be transparent in the investigation.
According to him, available data indicates that Nigeria loses an estimated N8 trillion annually to such waivers and concessions.

“Between 2023 and 2026, the federal government projects total revenue forgone from tax incentives at N12.4 trillion, while the tax-to-GDP ratio remains at only 10.6 per cent, which is among the lowest in Africa.
“This is paradoxical and concerning, given the financial and fiscal challenges the nation is facing. The new tax regime has presented us with an opportunity to look inwards”, Faleke stated.
He explained that the review followed growing concerns, based on the available official data and budgetary reports that significant public revenues may have been forgone or ineffectively applied under various incentive schemes.

Faleke said this is happening at a time when the nation continues to face pressing fiscal, infrastructure, and development challenges.
“While these incentives were originally designed to stimulate investment, promote exports, support strategic sectors, and grow the economy, the House has resolved that it is both necessary and timely to; assess their actual economic impact.

“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 breadth and complexity of the subject matter, the Committee is conducting its work in phases. The first phase of the review focuses on four priority areas with significant fiscal and economic implications:
“The Export Expansion Grant (EEG); The RT200bn FX Programme; The Pioneer Status Incentive; and
Selected Oil and Gas fiscal incentives,”he said.

Falake emphasised that the exercise is not a witch-hunt and should not be misconstrued as an attempt to undermine legitimate businesses or government support programmes.
“Rather, it is intended to strengthen the administration of incentives, safeguard public funds, and restore confidence in policies designed to support investment and export-led growth.
“In particular, the Committee recognises the concerns of exporters regarding outstanding obligations under the Export Expansion Grant and is undertaking an evidence-based verification process to ensure that legitimate and duly substantiated claims are validated and appropriately addressed.

“As part of its work, the Committee has requested records from relevant Ministries, Departments, and Agencies and will, where necessary, invite companies that have benefited from these incentives to provide clarification and documentation. Such engagements will be conducted transparently, fairly, and in accordance with due process.
“The Committee’s work forms part of the House of Representatives’ broader oversight responsibility and supports the Federal Government’s ongoing economic reform efforts, including the objectives of the President’s Renewed Hope Agenda to build a resilient, competitive, and productive economy.
“The House assures stakeholders and the general public that periodic updates will be provided as the review progresses”, he assured.