The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has publicly rejected the majority of criticisms from KPMG Nigeria over the newly enacted Nigeria Tax Act (NTA), arguing that the global advisory firm misunderstood the reform’s policy intent.
In a statement released on Saturday, Mr. Oyedele addressed concerns raised in KPMG’s analysis of the tax reform and called for constructive engagement on implementation and clarification issues.
KPMG, in a recently published newsletter, highlighted what it described as “errors, inconsistencies, gaps, omissions, and lacunae” in the tax laws and urged urgent reconsideration of certain provisions to ensure the reforms’ stated objectives are achieved. The firm’s critique noted specific perceived weaknesses in the legislative framework and recommended a review of technical provisions.
Responding to these points, Mr. Oyedele said while the committee “welcomes all perspectives that contribute to a shared understanding and successful implementation of the new tax laws,” the KPMG analysis “reflected a misunderstanding of the policy intent, a mischaracterisation of deliberate policy choices, and, in several instances, repetitions and presentation of opinion and preferences as facts.”
He added that a significant proportion of the issues described as errors, gaps or omissions were either analytical errors by KPMG, issues not properly understood by the firm, contextual oversights, or areas where KPMG preferred outcomes different from deliberate policy decisions embedded in the reforms.
Mr. Oyedele acknowledged that some of the points raised, particularly those relating to implementation risks or clerical and cross-referencing matters, could be useful and were already being addressed internally. He emphasised that such technical clarifications should be part of dynamic engagement between stakeholders rather than static critique.
In outlining elements he said were overlooked by the KPMG commentary, Mr. Oyedele pointed to major structural improvements within the NTA, including tax harmonisation measures, planned reduction in corporate tax rates, expanded input VAT credits, tax exemptions for low-income earners and small businesses, elimination of certain minimum taxes, and enhanced investment incentives for priority sectors.
The dispute over the reform’s interpretation comes amid broader national discussion on the implementation of the tax law, which took effect on January 1, 2026, following legislative approval.
Proponents of the reforms contend that the changes are designed to simplify Nigeria’s tax system, expand compliance, and deliver economic relief to individuals and businesses, while critics have raised concerns about technical inconsistencies and the effects on different segments of the economy.
Mr. Oyedele urged stakeholders to focus on engagement that supports clarification and effective implementation, including administrative guidance from tax authorities and complementary regulations. He said that such collaboration was essential for achieving the reform’s objectives of fostering a self-sustaining and competitive tax environment.
The ongoing debate highlights the complexity of tax policy reform and raises important questions about how technical analyses and policy intentions are communicated to the public and the private sector. Government officials and professional bodies are expected to continue discussions to resolve outstanding points and support a smoother implementation phase of the new tax framework.
