KPMG has raised concerns over gaps and ambiguities in Nigeria’s newly enacted tax laws, warning that poor clarity and implementation risks could trigger legal disputes and discourage investment.
In a recent advisory, the professional services firm noted that while the reforms aim to broaden the tax base, improve compliance, and boost government revenue, unclear provisions and overlapping interpretations could create uncertainty for businesses and investors.
KPMG cautioned that inconsistent enforcement may increase compliance costs and expose companies to prolonged tax disputes with authorities.
The firm further warned that without clear guidelines and stakeholder engagement, the reforms could heighten investor risk perceptions, potentially leading to capital flight, especially in a fragile macroeconomic environment.
KPMG urged policymakers to issue detailed regulations, strengthen dispute resolution mechanisms, and engage the private sector to ensure the reforms support growth, investment confidence, and long-term fiscal sustainability.
