$20 billion in revenue lost to fraudulent tax waivers

This figure was provided by a senior official of the Revenue Mobilisation and Fiscal Allocation Commission (RMFAC).

Minister of Finance, Dr. Ngozi Okonjo-Iweala

Nigeria has reportedly lost over $20 billion to tax fraud committed between 2010 and 2014.

This figure was provided by a senior official of the Revenue Mobilisation and Fiscal Allocation Commission (RMFAC), according to ThisDay.

Minister of Finance, Ngozi Okonjo-Iweala has also raised an alarm about the trend in a letter written to the Executive Secretary of the Nigerian Investment Promotion Commission (NIPC), Saratu Umar.

The letter reads:

"The purpose of this letter is to appraise you on apparent abuse in the grant of Pioneer Status (tax holiday) to companies in the country by the Nigerian Investment Promotion Commission (NIPC) leading to decline in tax revenues.”

"Pioneer status (tax holidays) was granted to companies whose products do not meet the requirements of the list of industries or products specified in the schedule to the Act."

Mrs Okonjo-Iweala added that NIPC officials granted tax holidays "for a straight five year- period, contrary to the provision of Section 10 of the Act which states that the tax relief period for a pioneer company shall commence from the production date of the company and shall continue for a period of three years in the first instance, and may be extended for a period of one year and thereafter for another one year, or for a period of two years subject to the satisfaction of Mr. President that certain requirements such as rate of expansion, standard of efficiency, level of development of company, among others, are met."

Also copied in the letter were the Minister of Petroleum Resources, Deziani Alison-Madueke, and her Industries, Trade and Investment counterpart, Olusegun Aganga.

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