KPMG in Nigeria has issued a clarification following strong public and institutional reactions to its recent newsletter on Nigeria’s new tax laws, stressing that its analysis was not intended to allege fraud, bad faith, or legislative impropriety, but to highlight areas where implementation and interpretation could benefit from clarification.
In the follow-up note, the firm said its newsletter had been “presented in some quarters in a manner that was neither intended nor implied,” and reaffirmed that Nigeria’s tax reforms are “transformational” and capable of moving the country in the right direction if properly implemented.
The clarification, signed off by Wale Ajayi, Partner and Head of Tax, Regulatory and People Services at KPMG Nigeria, appears to be an attempt to reset the tone of the debate after parts of government interpreted the original publication as overstating “errors and omissions” in the new tax framework.
KPMG: Purpose was clarity, not controversy
According to the firm, the primary purpose of the newsletter was to support the tax reform process by:
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facilitating clarity in the interpretation of the new tax laws,
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enhancing effective and efficient tax administration,
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reducing or eliminating unintended consequences and disputes, and
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promoting confidence in the tax system through timely clarification and refinement.
KPMG emphasised that identifying areas for improvement in legislation is a normal post-enactment process globally and not unique to Nigeria, noting that most complex tax systems evolve through iterative refinement after laws take effect.
Acknowledging reform ambition while flagging risks
In its statement, KPMG reiterated its view that the tax reforms codified in the new laws are fundamentally sound and ambitious. The firm said its intention was to draw attention to technical and administrative risks that could arise during implementation, not to question the legitimacy of policy choices or the integrity of the legislative process.
“As with any piece of complex legislation, there will always be areas for improvement,” the firm said, adding that its commentary was meant to contribute constructively to the law-improvement process rather than undermine confidence.
Context: a heated policy debate
KPMG’s clarification comes amid an unusually public exchange between professional advisers and policymakers over the design of Nigeria’s new tax framework. While the Presidential Fiscal Policy and Tax Reforms Committee has defended the laws as reflecting deliberate policy choices aligned with macroeconomic and revenue objectives, it also acknowledged that clerical and cross-referencing issues may arise in a reform of this scale.
KPMG’s latest note suggests a convergence in tone, if not position: recognition that the reforms are transformational, coupled with an insistence that early technical scrutiny can help avoid disputes, compliance bottlenecks, and misinterpretation.
What happens next
As Nigeria transitions from legislation to implementation, attention is expected to shift toward administrative guidance, circulars, and regulations that clarify grey areas in the new tax regime. Observers say the exchange between KPMG and government authorities highlights a broader challenge: balancing robust technical critique with confidence-building in a sensitive reform environment.
For now, KPMG appears keen to underline that its role is advisory rather than adversarial—and that refinement, not reversal, is the objective.
