KPMG, a global auditing and professional services firm, has identified what it described as loopholes and inconsistencies in Nigeria’s newly enacted tax laws, calling for urgent reviews to ensure the reforms achieve their intended objectives. The firm’s observations come amid growing controversy following President Bola Tinubu’s assent to the tax reform package on June 26, 2025, with the laws taking effect from January 1, 2026.
The reforms, proposed by the Presidential Fiscal Policy and Tax Reforms Committee, were designed to strengthen oversight of government revenues, streamline tax administration and align Nigeria’s tax system with global best practices. The legislation includes the Nigeria Tax Act (NTA) and the Nigeria Tax Administration Act (NTAA), which became operational in 2026, as well as the Nigeria Revenue Service Establishment Act (NRSEA) and the Joint Revenue Board Establishment Act (JRBEA), both activated on January 1, 2026, after earlier assent.
In a newsletter titled “Nigeria’s New Tax Laws: Inherent Errors, Inconsistencies, Gaps and Omissions,” KPMG acknowledged that proper implementation of the laws could significantly boost government revenue but warned that unresolved gaps could undermine the reforms. The firm stressed the need to balance revenue generation with sustainable economic growth, citing, for example, Section 3(b) and (c) of the NTA, which lists entities subject to taxation but omits “community” despite its inclusion in the law’s definition of “person.”