The Federal Government on Monday held a high-level meeting with senior executives of global professional services firm, KPMG, in a bid to resolve concerns arising from the implementation of Nigeria’s newly introduced tax laws.
The meeting, which took place in Abuja, followed weeks of debate within the business and professional community over the impact of the new tax regime on companies and taxpayers. It also came in the wake of a critical report by KPMG Nigeria titled “Nigeria’s New Tax Laws: Inherent Errors, Inconsistencies, Gaps and Omissions.”
In the report, KPMG had highlighted what it described as problematic provisions in the new tax framework, including issues around the taxation of shares, the treatment of dividends, obligations imposed on non-resident entities, and foreign exchange deductions. The firm warned that these provisions could create uncertainty and impose additional burdens on businesses, prompting a call for a review of the legislation.
The report, however, drew a swift response from the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, who publicly defended the Nigeria Tax Act. Oyedele argued that the firm had misunderstood the policy intent and structure of the reforms.
At Monday’s engagement, the Executive Chairman of the Nigeria Revenue Service (NRS), Dr Zacch Adedeji, addressed the areas of disagreement by offering detailed clarifications on the provisions queried by KPMG. According to officials, the explanations helped shed light on the government’s objectives and reduced ambiguities surrounding the Act.
Following the discussions, the KPMG delegation acknowledged that its earlier position on the tax laws had been misinterpreted and expressed regret over the misunderstanding. The firm also requested further explanations on some sections of the legislation, while noting that there remained room for professional input and recommendations.
Both parties agreed that differing interpretations of the new laws had contributed to confusion among taxpayers and stressed the need for sustained engagement to address emerging challenges linked to the reforms.
In a post shared on 𝕏, the Nigeria Revenue Service confirmed the meeting, noting that KPMG’s executives commended Adedeji for his leadership and the prompt rollout of the new tax framework.
“The KPMG executives commended the Executive Chairman for his leadership and the timely implementation of the new tax laws, noting that their initial apprehensions have been significantly allayed,” the NRS said.
The statement added that KPMG described the reforms as “necessary and timely” and pledged continued professional collaboration with the government to support effective tax administration and Nigeria’s broader economic growth.
