February 19, 2026 — The House of Representatives has officially commenced a high-stakes investigation into the administration of tax incentives and export grants, revealing that Nigeria loses an estimated N8 trillion annually to fiscal waivers and concessions.
The 19-member Ad-hoc Committee on the Review of Tax and Export Incentives, Waivers, and Exemptions, led by Hon. James Faleke, is tasked with scrutinizing the federal government’s fiscal support instruments granted between 2015 and 2025.
Speaking in Abuja on Tuesday, Faleke, who also chairs the House Committee on Finance, described the current situation as “paradoxical.” Despite the nation’s pressing infrastructure and development needs, billions of dollars in potential revenue are being forfeited under the guise of investment promotion.
“Available data indicate that Nigeria loses an estimated N8 trillion annually to such waivers and concessions,” Faleke stated. “Between 2023 and 2026, the federal government projects total revenue forgone from tax incentives at N12.4 trillion, while the tax-to-GDP ratio remains at only 10.6%—one of the lowest in Africa.”
Key Areas of Investigation
The probe will be conducted in phases, with the initial stage focusing on four high-impact sectors:
The Export Expansion Grant (EEG)
The RT200bn FX Programme
The Pioneer Status Incentive (PSI)
Selected Oil and Gas fiscal incentives
Faleke emphasized that the review is not a “witch-hunt” against the private sector. Instead, it aims to ensure that incentives are delivering measurable economic value rather than serving as loopholes for revenue leakages.
The committee has already requested detailed records from relevant Ministries, Departments, and Agencies (MDAs). It also plans to invite beneficiary companies to provide documentation and clarify how these incentives have impacted the Nigerian economy.
The House has committed to transparency throughout the exercise, promising periodic updates to the public. The ultimate goal is to recommend legislative reforms that align Nigeria’s tax regime with President Bola Tinubu’s “Renewed Hope Agenda” for a more competitive and productive economy.
