The Federal Government has moved to calm growing concerns over Nigeria’s newly introduced tax laws following a high-level engagement with senior executives of global professional services firm, KPMG.
The meeting, which took place on Monday in Abuja, was convened amid widespread debate within Nigeria’s business and professional circles about the potential impact of the new tax framework on companies, investors, and taxpayers.
The engagement followed the release of a KPMG Nigeria report titled “Nigeria’s New Tax Laws: Inherent Errors, Inconsistencies, Gaps and Omissions.”
In the publication, the firm raised red flags over several provisions of the legislation, including the taxation of shares, dividend treatment, foreign exchange deductions, and compliance requirements for non-resident entities. KPMG warned that, if left unaddressed, these issues could pose challenges for businesses operating in the country.
KPMG subsequently urged the government to revisit the legislation, arguing that the identified gaps and inconsistencies required urgent attention to prevent unintended economic consequences.
The report, however, drew a swift response from the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, who publicly defended the Nigeria Tax Act.
Oyedele maintained that the objectives and structure of the reforms had been misunderstood, stating that KPMG Nigeria did not fully grasp the policy intent behind the changes.
During Monday’s closed-door discussions, the Executive Chairman of the Nigeria Revenue Service (NRS), Dr Zacch Adedeji, addressed the firm’s concerns by providing detailed explanations on contentious sections of the law.
According to sources familiar with the meeting, these clarifications helped resolve several ambiguities and offered clearer insight into the government’s rationale for the reforms.
In response, the KPMG delegation acknowledged that aspects of its earlier assessment had been misinterpreted and expressed regret over the resulting misunderstanding.
While noting that many of its initial concerns had been addressed, the firm also requested further clarification on specific provisions and pointed out areas where additional professional input could still be valuable.
Both sides agreed that differing interpretations of the new laws had contributed to confusion among taxpayers and emphasized the need for ongoing dialogue to address emerging implementation challenges.
KPMG also praised Dr Adedeji for what it described as the efficient and timely rollout of the tax reforms, stating that many of its apprehensions had been significantly eased following the engagement.
In a statement shared on 𝕏, the Nigeria Revenue Service confirmed the meeting, describing it as a courtesy visit by KPMG’s top management. The statement quoted the delegation as commending Adedeji’s leadership and affirming that the new tax laws were “necessary and timely.”
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The NRS added that KPMG pledged continued collaboration with the government to support effective tax administration and promote sustainable economic growth in Nigeria.
