Oyedele Defends Nigeria Tax Act, Says KPMG Misunderstood Reform Intent

The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has defended the Nigeria Tax Act (NTA), saying consulting firm KPMG Nigeria misunderstood the policy intent behind the reform.

Oyedele clarified a statement on Saturday in response to KPMG’s recent analysis of the NTA, in which the firm highlighted what it described as errors, gaps, and contradictions in the new tax laws.

KPMG had said there were “errors, inconsistencies, gaps, omissions and lacunae” in the Act that needed urgent review to ensure the achievement of its stated objectives.

Reacting, Oyedele said the government welcomed all contributions that would aid understanding and effective implementation of the new tax laws.

He acknowledged that some of the issues raised by KPMG were useful, particularly those relating to implementation risks and clerical or cross-referencing matters.

However, Oyedele said the bulk of KPMG’s publication reflected a misunderstanding of the policy intent, a mischaracterisation of deliberate policy choices and, in some cases, the presentation of opinions as facts.

According to him, many of the issues described by KPMG as errors or gaps were either based on the firm’s own incorrect conclusions, poor understanding of the reforms, missed context on broader objectives, or preferences for alternative policy outcomes.

He added that some of the observations related to clerical and editorial matters already identified internally by the government.

Oyedele stressed that while disagreement with policy direction was legitimate, such differences should not be framed as errors or omissions.

He also said KPMG would have been more effective had it engaged directly with the government, similar to other professional firms that sought clarification and mutual learning during the reform process.

Addressing what he described as omissions in KPMG’s analysis, Oyedele said the firm failed to highlight key structural improvements introduced by the new tax laws.

These, he said, include tax simplification and harmonisation, a possible reduction in the corporate tax rate from 30 per cent to 25 per cent, expanded input VAT credits for businesses, tax exemptions for low-income earners and small businesses, the elimination of minimum tax on turnover and capital, and improved investment incentives for priority sectors.

He said a balanced assessment would have acknowledged these reforms and their transformative impact.

On the way forward, Oyedele said the tax reform was the outcome of extensive consultations with stakeholders, alongside a legislative process that included public hearings and opportunities for technical input from both local and international firms.

He noted that minor clerical inconsistencies could occur in any major overhaul of a national tax system, adding that such issues were already being addressed.

Oyedele said the reform represents a significant step toward building a self-sustaining and competitive Nigerian economy, stressing that effective implementation would depend on administrative guidance, regulatory support, and clarifications from tax authorities.

He urged stakeholders to move from what he described as static criticism to constructive engagement to support the successful implementation of the new tax laws.