The House of Representatives has launched a probe into the alleged abuse of tax incentives, waivers, and exemptions, which has reportedly cost Nigeria N8 trillion in lost revenue.
The move follows a motion of urgent public importance raised by Hon. Oluwole Oke (Oriade/Obokun Federal Constituency, Osun State) during Thursday’s plenary. Oke’s renewed push indicates that little progress has been made since the House first adopted the motion in July 2023.
He noted that while tax incentives are meant to stimulate economic activities and attract investments, widespread abuse has turned them into a financial burden. Citing data, he revealed that Nigeria loses N6 trillion to companies exploiting tax waivers and N2 trillion due to mismanagement.
He identified capital allowances, investment allowances, pioneer status incentives, free trade zone exemptions, and VAT exemptions as key areas of abuse. This, he warned, has contributed to Nigeria’s low tax-to-GDP ratio of 10.6%, among the lowest in Africa.
“If urgent steps are not taken, Nigeria could face a fiscal collapse similar to Venezuela,” Oke cautioned.
The House has now directed its Committees on Industry, Finance, and Commerce to investigate the issue and report back within four weeks.
