The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has strongly challenged a recent analysis by the professional services firm KPMG on Nigeria's newly enacted tax legislation. In a detailed response published on January 10, 2026, Oyedele argued that the KPMG report is fundamentally flawed, stemming from a misinterpretation of the government's policy objectives and a mischaracterisation of deliberate legislative choices.
KPMG's Concerns and Oyedele's Rebuttal
KPMG Nigeria, in its report, had raised several red flags, identifying what it called "errors, inconsistencies, gaps and omissions" within the new laws. The firm warned that these issues could potentially undermine the reform's goals, increase business costs, and dampen investor confidence. Key areas of concern included the taxation of nominal capital gains without inflation adjustment, ambiguous thresholds for taxing non-residents on indirect transfers, and limits on foreign exchange deductions.
Oyedele, responding via his X (formerly Twitter) handle, acknowledged that some of KPMG's observations on implementation risks and clerical issues were useful. However, he asserted that a significant portion of the issues labelled as errors were actually KPMG's own analytical missteps or conclusions based on a missed understanding of the broader reform context. He emphasised that a simple policy disagreement should not be framed as a legislative error.
"KPMG would have been more effective if the firm adopted a similar approach like other professional firms that engaged directly, providing the opportunity for clarifications and mutual-learning," Oyedele stated. "It is equally important to distinguish between policy choices designed to achieve the reform objectives and proposals that merely represent a firm’s preference."
Clarifications on Key Tax Provisions
Oyedele provided specific clarifications on the contentious points. On the fear that capital gains tax could trigger a stock market sell-off, he dismissed the claim as unsubstantiated. He explained that the tax rate on share gains is not a flat 30% but is structured from 0% to a maximum of 30%, set to reduce to 25%. Furthermore, he noted that approximately 99% of investors are entitled to unconditional exemption, with others qualifying based on reinvestment.
Addressing the foreign exchange deduction limits, Oyedele clarified that the law's disallowance of tax deductions for FX sourced from the parallel market at a premium is a deliberate fiscal policy choice. This measure is designed to complement monetary policy, strengthen the Naira, and discourage round-tripping by removing the tax subsidy for using the unofficial market.
He also firmly rejected KPMG's suggestion to exempt foreign insurance companies from tax on Nigerian premiums while taxing local firms. "This would create an unfair and harmful competitive disadvantage for local firms in their own market," he argued, stating the policy is intended to ensure a level playing field and promote domestic industry.
A Call for Balanced Engagement
Oyedele pointed out that while critiquing the reforms, the KPMG report failed to sufficiently highlight the landmark improvements in the new laws. These include the simplification and harmonisation of taxes, the reduction of corporate income tax from 30% to 25%, expanded input VAT credits, and exemptions for low-income earners and small businesses.
He reiterated that the tax reforms were the product of extensive stakeholder consultations and a transparent legislative process, which included public hearings. International firms had ample opportunity to provide technical input during this process. Oyedele concluded by urging all stakeholders to move from static criticism to a dynamic engagement model, fostering a productive partnership for the successful implementation of the new tax laws.
