The House of Representatives Ad hoc Committee on the review of tax and export incentives, waivers and exemptions, has lamented the country’s annual loss of about N8 trillion to waivers and concessions.

The Chairman of the Committee, Hon. James Faleke, who bore the minds of the committee, said that available data indicated that Nigeria loses an estimated N8 trillion annually to such waivers and concessions.

“Between 2023 and 2026, the federal government projects total revenue forgone from tax incentives at ₦12.4 trillion, while the tax-to-GDP ratio remains at only 10.6%, which is among the lowest in Africa.

This is paradoxical and concerning, given the financial and fiscal challenges the nation is facing. The new tax regime has presented us with an opportunity to look inwards,” Faleke stated.

He explained that the review followed growing concerns, based on the available official data and budgetary reports that significant public revenues may have been forgone or ineffectively applied under various incentive schemes

Faleke said this was happening at a time when the nation continued to face pressing fiscal, infrastructure, and development challenges.

“While these incentives were originally designed to stimulate investment, promote exports, support strategic sectors, and grow the economy, the House has resolved that it is both necessary and timely to; assess their actual economic impacts.

Determine whether they were administered transparently and in line with due process; and ensure that Government support delivers measurable value to the Nigerian economy.“

Given the breadth and complexity of the subject matter, the Committee is conducting its work in phases. The first phase of the review focuses on four priority areas with significant fiscal and economic implications:“The Export Expansion Grant (EEG); The RT200bn FX Programme; The Pioneer Status Incentive; and Selected Oil and Gas fiscal incentives,” he said.

Nigeria lost an estimated $1.31 billion due to its failure to meet its 1.5 million-barrel-per-day quota set by OPEC between January 2025 and January 2026.

Data show cumulative shortfalls of 18.12 million barrels despite relatively firm global oil prices.

Analysts say the core challenge is not price volatility but persistent production disruptions and structural inefficiencies.

The shortfall raises fresh concerns about Nigeria’s 2026 budget assumptions and broader investor confidence in Africa’s top oil producer.

The Federal Government was all smile as the Dangote Cement PlC paid about N900 billion in taxes in 2025.

Vice President Kashim Shettima, disclosed this on the occasion of the relaunch of Nigeria Industrial Policy 2025, where he reaffirmed the Federal Government’s pride in the Dangote Industries Limited , and the entire manufacturing sector.

According to VP Shettima, the government appreciates manufacturers who generate their own power and remain committed to national development through the payments of taxes.

He commended Dangote for generating more energy for its industries than many Nigerian states, “which is a plus for the African continent.”

“To occupy more than the margins in this present wave of industrial revolution, we must put in place infrastructure to compete with the rest of the world,” said VP Shettima.