The Presidential Fiscal Policy and Tax Reforms Committee has responded to a recent publication by KPMG, a global consulting firm, regarding Nigeria’s newly enacted tax laws. KPMG had flagged several concerns and “errors” in the laws, which took effect on January 1, 2026. However, the committee, led by Chairman Taiwo Oyedele, argued that many of KPMG’s concerns stemmed from misunderstandings of policy intent and deliberate reform choices rather than genuine errors.
The committee welcomed constructive feedback on the tax reforms, acknowledging that some of KPMG’s observations related to implementation risks and clerical issues were useful. Nevertheless, it contended that the majority of KPMG’s claims were either invalid conclusions, misinterpretations of the law, or differences in policy preference. The committee emphasized that disagreements over policy direction should not be presented as technical flaws and that more productive engagement would have involved direct consultations.
Regarding taxation of shares, the committee clarified that the new chargeable gains framework operates on a graduated scale, with a maximum tax rate of 30 percent, which will reduce to 25 percent. It also noted that about 99 percent of investors will enjoy unconditional exemptions. The committee rejected suggestions that the reforms would trigger a sell-off, citing the stock market’s record-high performance.
On the commencement date of the laws, the committee argued that the proposed start date of January 1, 2026, was reasonable, considering the complexity of transitioning across multiple tax bases, accounting periods, and ongoing transactions. The committee also defended provisions taxing indirect transfers of shares, describing them as aligned with global best practices and aimed at closing loopholes exploited by multinationals.
The committee addressed various other concerns, including the taxation of insurance premiums, which it explained were not considered taxable supplies under Nigerian tax law. It also clarified the definition of “community” as a taxable person, the composition of the Joint Revenue Board, and the treatment of dividends from foreign and Nigerian companies, describing these as deliberate drafting and policy choices consistent with international standards.
The committee urged stakeholders to engage constructively to ensure effective implementation of the new tax framework, which it said followed extensive consultations and legislative scrutiny. While criticizing KPMG’s publication for failing to highlight major benefits of the reforms, the committee acknowledged that a few points raised were useful, particularly those related to implementation risks and clerical issues. The committee emphasized the need for stakeholders to move from “static critique” to constructive engagement, ensuring a shared understanding and successful implementation of the new tax laws.
