The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has responded to concerns raised by KPMG over Nigeria’s newly enacted tax laws, describing many of the firm’s observations as based on misunderstandings of policy intent rather than substantive flaws in the legislation.
In a statement, Oyedele acknowledged that some of KPMG’s comments were constructive but argued that the bulk of the critique mischaracterised deliberate policy choices, confused reform objectives, or presented opinion as fact. He noted that several issues labelled as “errors” or “gaps” were either misinterpretations of the law or clerical and editorial matters already identified by the government.
While affirming that disagreement with government policy is legitimate, Oyedele stressed that such differences should not be framed as legislative failures or omissions. He added that more effective engagement would have involved direct consultation, similar to the contributions made by other professional firms during the drafting stage of the reforms.
Addressing specific areas highlighted by KPMG, Oyedele clarified misconceptions around the taxation of shares and the stock market. He rejected suggestions that the reforms would trigger a market sell-off, explaining that chargeable gains tax under the new regime is graduated from zero per cent to a maximum of 30 per cent, which will later be reduced to 25 per cent. He added that most investors would qualify for exemptions or reinvestment reliefs.
According to Oyedele, recent stock market performance reflects investor confidence that the tax reforms are designed to strengthen corporate fundamentals rather than undermine market stability.
He also countered KPMG’s proposal to align the commencement date of the tax laws with the beginning of an accounting period, arguing that such an approach overlooks the complexity of the transition. The reforms, he said, cut across multiple accounting bases, audit requirements, deductions and continuous transactions, making a simplified timeline impractical.
On the provision for indirect transfer of shares, Oyedele defended its inclusion, noting that it aligns with global Base Erosion and Profit Shifting (BEPS) initiatives and is aimed at closing loopholes often exploited by multinational companies.
Overall, Oyedele maintained that the new tax laws are carefully structured to support fiscal sustainability, improve fairness and strengthen Nigeria’s economic framework.
