KPMG clarifies position on Nigeria’s new tax laws

KPMG has clarified that its recent newsletter on Nigeria’s newly enacted tax laws was intended to support understanding and effective implementation of the reforms, not to criticise government policy or undermine confidence in the fiscal direction of the country.

The professional services firm made this known in a statement issued on Saturday, following what it described as varied public reactions and misinterpretations of the publication.

According to KPMG, the clarification became necessary after the newsletter was presented in ways that did not accurately reflect its original purpose or substantive content.

The clarification follows earlier reports that the Presidential Fiscal Policy and Tax Reforms Committee, chaired by Taiwo Oyedele, had faulted some of KPMG’s observations on the newly enacted tax laws.

In response, KPMG stressed that its commentary was not designed to challenge the credibility of the reforms or question the government’s fiscal agenda.

“For the avoidance of doubt, the purpose of the newsletter is to facilitate clarity in the interpretation of the tax laws, enhance effective and efficient tax administration, reduce or eliminate unintended consequences or disputes, and promote confidence in the tax system by encouraging timely clarification and refinement of the tax laws,” the firm stated.

KPMG explained that its analysis was aimed at assisting taxpayers, businesses, and tax administrators to better understand the scope and implications of the reforms, thereby ensuring smoother implementation.

The firm described Nigeria’s recent tax reforms—now codified into law—as a significant and transformational step in the country’s fiscal and economic management.

According to the firm, if properly implemented, the reforms could improve revenue mobilisation, strengthen tax administration, and place Nigeria on a more sustainable fiscal path.

However, it noted that legislation of such scale and complexity often requires post-enactment review to address grey areas that may only become apparent during implementation.

Tax and fiscal policy experts say the disagreement underscores the delicate balance between policy formulation and technical interpretation.

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According to fiscal analysts, professional services firms play a critical role in translating complex legislation into practical guidance for businesses and regulators.

A Lagos-based tax consultant noted that technical commentaries by firms such as KPMG, PwC, and Deloitte are common globally and often help governments identify potential implementation challenges early.

“Highlighting grey areas does not amount to opposition. In many jurisdictions, such feedback actually strengthens tax laws and improves compliance,” the expert said.

Another policy analyst observed that Nigeria’s tax reforms are ambitious and long overdue, but warned that without continuous engagement with stakeholders, including private-sector experts, unintended outcomes could arise.

“The success of these reforms will depend not just on the laws themselves, but on clarity, consistency, and trust in the system,” the analyst said.

Analysts say sustained dialogue between the government and tax professionals will be crucial to ensuring that the reforms achieve their intended objectives without creating avoidable disputes or compliance challenges.