The Federal Government on Monday met with senior officials of global professional services firm KPMG in Abuja to resolve concerns and divergent interpretations surrounding Nigeria’s newly enacted tax laws.
The engagement followed weeks of intense debate within the business and professional community after KPMG Nigeria released a report titled “Nigeria’s New Tax Laws: Inherent Errors, Inconsistencies, Gaps and Omissions.” In the report, the firm raised red flags over several provisions of the new framework, including the taxation of shares, dividend treatment, obligations of non-resident entities, and foreign exchange deductions, warning that these issues could have far-reaching implications for businesses and taxpayers.
KPMG subsequently called for a review of the laws, arguing that the identified “errors, inconsistencies, gaps, omissions, and lacunae” required urgent reconsideration.
The report, however, sparked pushback from the government. Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, publicly defended the Nigeria Tax Act (NTA), insisting that the reform had been misunderstood and that KPMG Nigeria had misinterpreted the policy intent behind the legislation.
At the Abuja meeting, the Executive Chairman of the Nigeria Revenue Service (NRS), Dr. Zacch Adedeji, addressed the disputed areas and provided clarifications on key provisions of the Act.
According to updates from the discussions, the KPMG delegation acknowledged that its earlier commentary had been misconstrued and expressed regret over the resulting misunderstanding.
The firm emphasized that its objective was to seek clarity, contribute constructively to the reform process, and offer recommendations where necessary.
Both parties agreed that differing interpretations of the new laws had contributed to confusion among taxpayers and underscored the need for continuous engagement to resolve emerging issues and ensure smooth implementation.
In a statement shared on X, the NRS said the KPMG team commended Dr. Adedeji for his leadership and the timely rollout of the tax reforms, noting that many of their initial concerns had been substantially addressed.
“They affirmed that the reforms are both necessary and timely, and pledged continued professional engagement in support of effective tax administration and national economic growth,” the NRS stated.
The meeting marks a step toward greater collaboration between the government and professional stakeholders as Nigeria seeks to strengthen its tax system and improve revenue mobilisation while maintaining investor confidence.
About the Author
