Nigeria’s Presidential Fiscal Policy and Tax Reforms Committee has pushed back on a recent KPMG report that raised concerns about the country’s newly enacted tax laws. The panel said much of KPMG’s analysis misunderstood policy intent, mischaracterized deliberate reforms, and presented opinions as facts.

Committee Chairman Taiwo Oyedele, in a detailed response titled “Response to KPMG: Observations on Nigeria’s New Tax Laws”, acknowledged that while some technical observations on implementation risks were useful, most criticisms failed to contextualize the reforms within Nigeria’s broader fiscal and economic goals.

Oyedele clarified several points:

• Capital gains tax on shares ranges from 0–30%, with most investors enjoying exemptions; fears of a stock market sell-off are unsupported by evidence.
• The commencement of new tax provisions cannot be anchored to a single accounting period due to the complexity of reform, covering multiple assessment bases, deductions, and penalties.
• Provisions on indirect transfer of shares align with global best practices to curb tax base erosion, not undermine competitiveness.
• VAT on insurance premiums is unnecessary since insurance is not a taxable supply under Nigerian law.
• Clarifications on foreign dividends, non-resident taxation, and exchange rate deductions reflect deliberate policy choices, not flaws.
• Structural improvements, such as corporate tax reduction to 25%, input VAT expansion, minimum tax removal, and investment incentives, were not fully acknowledged by KPMG.

Oyedele stressed that criticisms of policy choices should not be confused with technical errors, and that successful implementation relies on administrative guidance, regulations, and collaboration among stakeholders. He urged professionals to support the reforms rather than static critique, emphasizing that the laws are the product of extensive consultation, public hearings, and legislative transparency.