Taiwo Oyedele Defends Nigeria Tax Act, Says KPMG Misunderstood Policy Intent

Taiwo Oyedele Defends Nigeria Tax Act, Says KPMG Misunderstood Policy Intent

The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has strongly defended the Nigeria Tax Act (NTA), insisting that KPMG Nigeria misunderstood the policy intent and mischaracterised several deliberate choices embedded in the reform.

Oyedele made the clarification in a statement issued on Saturday in response to KPMG’s analysis of the Nigeria Tax Act, which highlighted what the firm described as “errors, inconsistencies, gaps, omissions and lacunae” in the new tax laws and called for urgent reviews.

Reacting to the critique, Oyedele said the committee welcomed constructive feedback but noted that much of KPMG’s publication reflected a poor understanding of the reform objectives.

“We welcome all perspectives that contribute to a shared understanding and successful implementation of the new tax laws,” Oyedele said. “However, the majority of the publication reflected a misunderstanding of the policy intent, a mischaracterisation of deliberate policy choices, and, in several instances, the presentation of opinion and preference as facts.”

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While acknowledging that some points raised by KPMG were useful—particularly those relating to implementation risks and clerical or cross-referencing issues—Oyedele stressed that many of the issues labelled as errors were either incorrect conclusions or matters taken out of context.

According to him, several of the so-called gaps identified by KPMG fall into categories such as the firm’s own analytical errors, failure to understand broader reform objectives, preference for alternative outcomes over deliberate policy choices, or minor editorial issues already identified internally by government.

“While it is legitimate to disagree with policy direction, disagreements should not be framed as errors or gaps,” Oyedele said, adding that KPMG could have achieved better results through direct engagement with policymakers, as done by other professional firms.

What KPMG Failed to Highlight

Oyedele also criticised KPMG for omitting key structural improvements introduced under the Nigeria Tax Act, which he described as transformative for the economy. These include:

• Simplification and harmonisation of taxes
• Reduction of corporate tax rate from 30% to 25%
• Expanded input VAT credits for businesses
• Tax exemptions for low-income earners and small businesses
• Elimination of minimum tax on turnover and capital
• Improved investment incentives for priority sectors

He noted that a balanced assessment would have recognised these reforms as central to building a more competitive and inclusive tax system.

Way Forward

Oyedele explained that the tax reform was the outcome of extensive stakeholder consultations, including public hearings during the legislative process, and opportunities for professional firms—local and international—to contribute technical expertise.

He acknowledged that minor clerical inconsistencies may arise in any major tax overhaul but said these were already being addressed within government.

“The tax reform represents a bold step toward a self-sustaining and competitive Nigeria,” Oyedele said, adding that the law’s effectiveness now depends on administrative guidance, regulatory clarity, and continuous engagement with stakeholders.

He urged critics to shift from what he termed “static critique” to “dynamic engagement” to support effective implementation of the new tax laws.

Taiwo Oyedele Defends Nigeria Tax Act, Says KPMG Misunderstood Policy Intent