KPMG executives met with Zacch Adedeji, chairman of the Nigeria Revenue Service (NRS), on Monday, days after the firm publicly criticised Nigeria’s newly enacted tax laws.
The meeting followed a disagreement triggered by a KPMG newsletter that flagged what it described as “errors, inconsistencies, gaps, omissions and lacunae” in the new tax regime.
In a statement on Monday, the NRS said Adedeji received a delegation from the tax advisory firm on a courtesy visit, during which the executives commended his leadership and the implementation of the reforms.
According to the NRS, the KPMG team said their earlier concerns had been “misconstrued” and that their apprehensions about the new laws had been significantly reduced.
“They affirmed that the reforms are both necessary and timely, and pledged continued professional engagement in support of effective tax administration and national economic growth,” the statement said.
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However, sources within the NRS said the visit was prompted by KPMG’s request for clarification on specific provisions of the laws following the backlash that greeted its initial assessment.
According to one of the sources, the firm acknowledged that its earlier position had generated controversy and expressed regret over the misunderstanding.
“The delegation sought further clarity on the provisions of the laws and highlighted areas where they believe recommendations could still be made,” the source said.
KPMG, in its January 9 newsletter, had warned that the new tax laws contained significant weaknesses that could undermine their objectives if not urgently reviewed.
The publication drew a swift response from the presidential fiscal policy and tax reforms committee, which on January 10 dismissed KPMG’s assessment, saying many of the alleged flaws were based on “errors, invalid conclusions or a lack of proper understanding” by the firm.
The committee’s response intensified public debate around the reforms and placed KPMG’s critique under scrutiny, leading to calls for greater engagement between policymakers and professional advisory firms.
The NRS said the meeting underscored its commitment to stakeholder engagement as the implementation of the new tax laws continues.
