The Presidential Fiscal Policy and Tax Reforms Committee has responded to KPMG’s recent critique of Nigeria’s newly enacted tax laws, which took effect on January 1, 2026. The committee, led by Taiwo Oyedele, dismissed the majority of KPMG’s flagged errors as misinterpretations, invalid conclusions, or differences in policy preference, rather than genuine legislative flaws. It acknowledged that some observations on clerical or cross-referencing issues were useful but emphasized that overall, the critique misrepresented the intent of the reforms.
Addressing specific concerns, the committee clarified that the chargeable gains framework on share sales operates on a graduated scale, with most investors enjoying exemptions, countering KPMG’s claim that the reforms would impose a flat 30 percent tax and trigger a market sell-off. It also defended the taxation of indirect share transfers as aligned with global best practices, and rejected calls for special VAT exemptions on insurance premiums, noting these were consistent with existing Nigerian law.
The committee further refuted KPMG’s concerns over definitions, including the treatment of communities as taxable entities, the composition of the Joint Revenue Board, and dividend taxation from foreign and Nigerian companies. It also defended policies restricting tax deductions on foreign exchange purchased at parallel market rates, and rejected proposals that would exempt foreign insurance companies from tax, arguing these measures protect local businesses and stabilize the naira.
On personal income tax, the committee argued that the top marginal rate of 25 percent remains competitive, with effective rates often lower, and dismissed claims of oppressive taxation. It also highlighted factual errors in KPMG’s report, such as references to the now-expired Police Trust Fund and outdated small company exemptions. The committee noted that the reforms offer major benefits, including tax harmonization, reduced corporate rates, expanded VAT credits, exemptions for low-income earners and small businesses, and investment incentives.
Concluding its response, the committee urged stakeholders to move from static critique to constructive engagement, emphasizing that the laws followed extensive consultations and legislative scrutiny. “A significant proportion of the issues described as ‘errors,’ ‘gaps,’ or ‘omissions’ by KPMG are either the firm’s own errors, misinterpretations, or preferences for different policy outcomes,” the committee stated, reinforcing that the reforms are sound and designed to strengthen Nigeria’s tax framework.
