Nigeria is bleeding money through concessions and tax waivers, according to members of the House of Representatives of Nigeria. Lawmakers have warned that about ₦8 trillion is lost each year due to exemptions granted to companies and individuals across various sectors of the economy, raising concerns over revenue shortfalls and fiscal sustainability.
At a recent plenary session in Abuja, several lawmakers highlighted the scale of the fiscal loss and questioned the rationale behind some of the concessions and waivers that continue to be approved without clear measurable benefits to the economy. According to the representatives, while tax incentives and duty waivers are sometimes necessary to attract investment or support strategic industries, unchecked and poorly monitored exemptions have eroded government revenue that could otherwise support critical infrastructure, social services, and public investment.
Lawmakers pointed out that many of the benefits extended to multinational firms, multinational oil companies, and other sectors enjoy exemptions that cumulatively amount to huge sums over time. They also criticised weak oversight mechanisms, saying that some waivers are granted without strict conditions, timelines, or transparency, making it difficult to assess whether they deliver intended economic growth or simply drain the Treasury.
In debating the issue, representatives urged the Federal Government, the Federal Inland Revenue Service (FIRS), and relevant committees of the National Assembly to review the existing framework for concessions and waivers, tighten the approval process, and ensure that any exemptions are tied to clear performance indicators and periodic reviews.
Some lawmakers stressed that urgent reforms are needed to plug revenue leaks and broaden the country’s tax base, especially as Nigeria continues to grapple with inflation, unemployment, and significant infrastructure deficits. They argued that rationalising concessions could unlock billions of naira for education, healthcare, road construction, and other essential services.
The debate reflects broader concerns about revenue generation and fiscal accountability in Nigeria’s economy, with legislators calling for more transparency in how tax breaks are granted, stronger parliamentary oversight, and tighter enforcement of financial regulations to ensure that public funds are used effectively.
For many lawmakers, the message was clear: Nigeria can no longer afford unchecked revenue loss if it hopes to stabilize the economy and fund critical development priorities.
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