The Nigerian House of Representatives has announced its decision to initiate an investigation into allegations of abuse of tax incentives, tax breaks, and tax waivers by both public institutions and companies. The misuse of these incentives has reportedly resulted in a staggering loss of approximately N14 trillion in revenue.
During a plenary session on Thursday, the House unanimously adopted a motion put forth by Hon. Oluwole Oke, which highlighted the significant financial impact caused by the abuse of tax incentives. According to the motion, Nigeria suffers an annual loss of about N8 trillion due to tax incentives and waivers, while an additional N6 trillion is lost due to companies taking advantage of the system.
In response to these alarming figures, the House has taken proactive measures to address the issue. One such measure is the decision to restrict crude oil lifting contracts exclusively to companies listed on the Nigerian Exchange Group. By limiting these contracts to publicly quoted companies, the House aims to promote transparency and accountability within the sector.
The investigation into the abuse of tax incentives and waivers is crucial to safeguarding the nation’s revenue and ensuring that public institutions and companies operate in compliance with existing tax regulations. It is expected that the investigation will shed light on specific cases of abuse, identify the parties involved, and recommend appropriate measures to address the issue.
The loss of such a significant amount of revenue has adverse effects on Nigeria’s economy, hindering development initiatives and essential public services. By holding public institutions and companies accountable for their actions, the House of Representatives aims to restore the integrity of the tax system and protect the country’s financial interests.
The House’s commitment to addressing this issue demonstrates its determination to foster responsible fiscal practices and ensure a fair and equitable tax framework for all stakeholders. The outcome of the investigation will provide valuable insights and recommendations that can guide legislative and policy reforms, reinforcing the government’s efforts to promote transparency, accountability, and economic growth.
As the investigation progresses, the House of Representatives encourages public engagement and cooperation to uncover any instances of abuse and hold the responsible parties accountable. It is through collective efforts that Nigeria can overcome challenges in its tax system and foster a sustainable and prosperous future.