Just weeks after Nigeria’s landmark Tax Act became law, global accounting giant KPMG has raised serious red flags. In a scathing assessment titled “Nigeria’s New Tax Laws: Inherent Errors, Inconsistencies, Gaps and Omissions,” the firm identified multiple technical problems that could have real-world consequences for businesses, investors, and everyday Nigerians—including those of us in the diaspora.
What’s the Problem?
KPMG highlighted several critical issues. The law calculates capital gains without adjusting for inflation, which seems almost absurd in a country where inflation has been ravaging purchasing power for years. There’s also confusion about foreign exchange rules that could leave businesses unable to properly deduct expenses when they’re forced to buy dollars at premium rates. And non-resident companies face unclear registration requirements that could create bureaucratic nightmares.
Government officials, including tax reform chairman Taiwo Oyedele, have pushed back hard, calling KPMG’s criticisms misunderstandings rather than genuine errors. But the fact that a firm of KPMG’s caliber is publicly questioning the law’s technical soundness raises legitimate concerns about implementation.
Why Diasporans Should Pay Attention
If you’re sending money home, considering investments in Nigeria, or thinking about eventually returning, this matters more than you might think. Tax laws affect everything from the returns on your Nigerian investments to the business environment your remittances support. When multinational firms like KPMG warn about technical problems, it signals potential complications for foreign investors and businesses—the very entities that create jobs and drive economic growth back home.
Moreover, unclear tax rules create uncertainty. And uncertainty is investment poison. Nigeria needs all the foreign direct investment it can get, and diaspora capital represents a massive untapped resource. But we’re not putting our money into systems that feel unstable or unpredictable.
The debate between KPMG and government officials will likely continue, but one thing is clear: getting tax reform right matters. It affects whether Nigeria becomes a more attractive place to do business or remains trapped in bureaucratic complexity. For those of us watching from abroad, hoping for a more prosperous Nigeria to invest in or return to, these details aren’t just technical footnotes—they’re the foundation of economic transformation.