The leadership of the National Revenue Service, NRS, and top officials of KPMG Nigeria have resolved their differences over Nigeria’s newly introduced tax laws following a high-level meeting in Abuja, easing tensions that had stirred concern across the business and professional community.
The closed-door engagement came against the backdrop of growing debate over the implementation of the new tax framework, regarded as one of the most far-reaching fiscal reforms in recent years. Concerns had mounted after KPMG Nigeria released a report highlighting what it described as errors, inconsistencies, gaps, and omissions in the new laws.
In the report titled “Nigeria’s New Tax Laws: Inherent Errors, Inconsistencies, Gaps and Omissions,” KPMG raised issues around the taxation of shares, dividend treatment, obligations of non-resident entities, and foreign exchange deductions, warning that these provisions could have unintended consequences for businesses and taxpayers.
The firm also called for an urgent review of the legislation, arguing that unresolved gaps and ambiguities could undermine the stated objectives of the reforms.
The criticisms, however, drew a sharp response from the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, who defended the Nigeria Tax Act and insisted that KPMG had misunderstood the intent of the reforms.
Sources familiar with the Abuja meeting said that the Executive Chairman of the NRS, Dr Zacch Adedeji, used the engagement to clarify grey areas in the new tax laws and explain the policy direction behind key provisions. During the discussions, the KPMG delegation reportedly acknowledged that its earlier position had been misconstrued and expressed regret over the misunderstanding.
The firm was said to have sought further clarification on specific sections of the law while identifying areas where technical recommendations could still be made. The KPMG team also commended Adedeji for what it described as the effective and timely rollout of the reforms, noting that many of its initial concerns had been addressed.
In a statement posted on X after the meeting, the NRS said Adedeji received KPMG’s top management team on a courtesy visit, during which the firm praised his leadership and the implementation of the new tax laws.
According to the statement, KPMG affirmed that the reforms are necessary and timely, and pledged continued professional engagement in support of efficient tax administration and Nigeria’s economic growth.
Both parties agreed that differences in interpretation had contributed to confusion among taxpayers and acknowledged the need for sustained dialogue to resolve emerging issues as implementation continues.
The development is expected to reassure investors and businesses that the government remains open to engagement, even as it pushes ahead with reforms aimed at broadening the tax base and strengthening fiscal stability.
