KPMG Criticize the Presidential Committee 2026 Tax Reforms

Professional services firm KPMG has publicly criticized the 2026 tax reforms, raising concerns over potential inconsistencies and economic risks in the newly enacted laws.

The implementation of Nigeria’s ambitious fiscal overhaul has sparked a high-level debate as KPMG released a critical analysis of the Nigeria Tax Act 2025 and the Nigeria Tax Administration Act. 

The firm’s critique focuses on what it describes as "inherent errors, inconsistencies, and omissions" that could create uncertainty for investors and weaken the country's economic competitiveness.

Core Critiques from KPMG

In its assessment, KPMG identified several areas where the new legislation might fall short of its intended goals:

  • Capital Market Impact: The firm warned that taxing chargeable gains on shares could trigger market sell-offs.
  • VAT Inconsistencies: KPMG highlighted a lack of explicit exemptions for insurance premiums, arguing this creates administrative ambiguity.
  • Foreign Investment: Concerns were raised regarding the dividend treatment for foreign companies and non-resident registration requirements, which the firm suggests could deter international capital.
  • Operational Costs: The firm argued for the deductibility of parallel market FX costs, noting that official rates often do not reflect the reality of business operations in Nigeria.

The Presidential Committee Rebuttal

The Presidential Fiscal Policy and Tax Reforms Committee, chaired by Taiwo Oyedele, was quick to respond, dismissing most of the criticisms as "misunderstandings of policy intent." 

In an official statement, the committee argued that KPMG's "errors" were, in fact, deliberate anti-avoidance measures aligned with global standards.

The committee specifically countered the capital market concerns by noting that 99% of investors qualify for exemptions and that the stock market has actually hit record highs since the reforms were announced.

Tension in the Professional Community

This exchange highlights a significant tension between policy designers and tax practitioners. While the government views these reforms as a way to simplify the system and reduce the burden on low-income earners, KPMG and other critics worry about the "administrative complexity" and the "clerical issues" that might arise during the transition.

As of January 2026, the laws are officially in effect, but the sharp disagreement suggests that further clarifications or even supplementary amendments may be necessary to ensure smooth compliance across the private sector.