The House of Representatives has clarified that a probe into the annual losses from tax concessions and waivers was not a witch-hunt, but a move to strengthen incentive administration, protect public funds, and restore confidence in government support programmes.

The chairman of the Ad Hoc Committee on the Review of Tax and Export Incentives, Waivers and Exemptions, James Faleke, said this in a statement on Tuesday.

Mr Faleke said the probe intended to strengthen the administration of incentives, safeguard public funds, and restore confidence in policies designed to support investment- and export-led growth.

He assured that the committee would continue to conduct periodic reviews of the exercise and would be transparent in the investigation.

“You will recall that on the 13th, the House debated the above motion with vigour and serious concern. Accordingly, the House constituted an ad hoc committee pursuant to Resolution HR.112/11/2025 of 13 November 2025, with a mandate to investigate revenue losses and leakages,” Mr Faleke explained. ”The committee has, accordingly, begun a structured review of the administration and impact of tax incentives, export incentives, waivers, exemptions, and other fiscal support instruments granted by the Federal Government between 2015 and 2025.”

He added, “Available data indicate that Nigeria loses an estimated eight trillion Naira annually to such waivers and concessions. 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 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.”

Mr Faleke explained that the review followed growing concerns, based on available official data and budgetary reports, that significant public revenues may have been forgone or applied ineffectively under various incentive schemes.

Mr Faleke said that the first phase of the review focused on four priority areas with significant fiscal and economic implications, including the export expansion grant, the RT200bn FX programme, the pioneer status incentive and selected oil and gas fiscal incentives.

“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,” stated the lawmaker.

(NAN)