The Tax Ombud and Chief Executive of the Office of the Tax Ombud, Dr. John Nwabueze, has expressed concerns about the cumulative burden of multiple taxes, levies, fees, and charges on Nigerian businesses. He stated that duplication and competing demands from different authorities were increasing the cost and complexity of doing business in the country. Nwabueze made these remarks at the 36th annual conference of the Finance Correspondents Association of Nigeria (FICAN) in Lagos.
Nwabueze emphasized that Nigeria cannot build a sustainable revenue system by focusing solely on what citizens and businesses are required to pay. He stressed that stakeholders must also address why businesses should trust the system through which they pay taxes and levies to the government. According to him, the need for businesses to trust the system is where tax reform, recapitalization, and the fintech revolution converge.
The Tax Ombud noted that the four Tax Acts enacted in 2025 aim to modernize revenue administration, establish clearer legal frameworks, and improve coordination among tax-related institutions. He added that the federal government issued transition guidelines to facilitate implementation and clarify the move from the previous tax regime to the new framework. However, he questioned whether small business owners understand their obligations and whether companies can determine which taxes, levies, and charges legitimately apply to them.
Nwabueze also raised concerns about taxpayers' ability to obtain timely responses when assessments or administrative decisions are disputed. He emphasized that these are not merely administrative questions but questions of economic confidence. The Tax Ombud stressed that revenue growth and taxpayer confidence should not be regarded as competing objectives and that stakeholders collectively have a responsibility to ensure the reforms produce tangible improvements in administration, clarity, and fairness.
According to Nwabueze, taxpayers' rights and responsibilities are inseparable, and citizens and businesses have a legitimate obligation to pay all lawfully imposed taxes. He warned that tax evasion undermines public revenue, places additional pressure on compliant taxpayers, and distorts competition. The Tax Ombud emphasized that a society cannot sustainably finance public services, infrastructure, and development when individuals and businesses deliberately avoid their lawful obligations.
Nwabueze noted that the fintech revolution has transformed Nigeria's financial landscape, with digital payments, technology platforms, and innovative financial solutions. He stated that these developments have the potential to increase revenue growth and taxpayer confidence but also require a fair and transparent system. The Tax Ombud emphasized that stakeholders must work together to ensure that the tax system is fair, efficient, and effective.
The Tax Ombud's call for simplified digital tax administration and upholding taxpayers' rights is crucial in promoting economic growth and confidence in Nigeria's tax system. His recommendations aim to address the challenges faced by businesses and taxpayers, ensuring a fair and efficient tax system that promotes sustainable revenue growth and economic development.
Key points
- The Tax Ombud urges authorities to simplify digital tax administration and uphold taxpayers' rights to promote economic growth and confidence in Nigeria's tax system.
- Multiple taxes, levies, and charges are increasing the cost and complexity of doing business in Nigeria, according to the Tax Ombud.
- The Tax Ombud emphasizes that taxpayers' rights and responsibilities are inseparable, and citizens and businesses have a legitimate obligation to pay all lawfully imposed taxes.
