The Presidential Fiscal Policy and Tax Reforms Committee has rejected key parts of a recent KPMG report on Nigeria’s newly enacted tax laws, describing much of the analysis as based on “misunderstandings of policy intent, mischaracterisation of deliberate reforms, and the presentation of opinions as facts.”
The Committee acknowledged some of KPMG’s observations on implementation risks and clerical issues as useful but said the bulk of the firm’s commentary “failed to properly reflect the objectives and design of the reforms.” It added that many issues flagged as “errors” or “gaps” were either incorrect conclusions, a lack of appreciation of the broader reform context, or areas where KPMG preferred alternative policy outcomes to those deliberately adopted by government.
Addressing concerns over share taxation, the Committee clarified that “the applicable tax rate on share gains is not a flat 30%. The tax framework is structured from 0% to a maximum of 30%, which is set to reduce to 25%. Furthermore, a significant majority of investors (99%) are entitled to unconditional exemption, with others qualifying subject to reinvestment.”
The Committee defended provisions on indirect transfers of shares and VAT, describing them as aligned with global best practices and deliberate policy choices. On personal income tax, it stressed that “the effective tax rate can be as low as 22% for an individual earning billions a year simply by contributing 10% to pension. This rate is competitive… and ensures progressivity without compromising competitiveness.”
It urged stakeholders to move beyond “static critique” and adopt a collaborative approach focused on clarification and effective implementation, in line with Nigeria’s goal of building a competitive and self-sustaining economy.
