Tax Ombud Warns Revenue Targets Alone Cannot Sustain Nigeria's Tax Reforms

Nigeria's Tax Ombud has warned that tax reforms built only around collection targets will not last unless taxpayers trust the system. Dr John Nwabueze, Nigeria's first Tax Ombudsman, made the case in a speech delivered on his behalf by his Chief of Staff, Dr Peter Iwegbu, at the 36th anniversary conference of the Finance Correspondents Association of Nigeria (FICAN) in Lagos at the weekend.

The conference was themed “Building on the Gains of Recapitalisation, Tax Reforms, and Fintech Revolution.” Nwabueze focused on taxpayer confidence and trust in Nigeria's tax reform agenda, arguing that revenue growth and taxpayer confidence can reinforce each other when the system is properly administered.

Trust deficit behind low tax-to-GDP

Nwabueze said Nigeria cannot build a sustainable tax system by focusing only on what citizens and businesses must pay. He identified the trust deficit as a more urgent challenge behind Nigeria's low tax-to-GDP ratio, warning that legislation and enforcement alone cannot deliver sustainable revenue growth.

“Nigerians cannot build a sustainable revenue and tax system by focussing only on what the citizens and business must pay. We must also focus on why they should trust the system through which they pay,” he said.

“Revenue growth and taxpayers' confidence should not be viewed as an opposing objective. Properly administered, they can reinforce one another.”

He said taxpayers are entitled to an administration that is fair, transparent, accountable and consistent with the law. They must understand what they are being asked to pay, why they are being asked to pay for it, and what avenues are available if they believe they have been unfairly treated.

“Trust is not treated by promise alone. It is built through institutional conduct and demonstrable efforts,” Nwabueze said. He added that the Tax Ombud was not established to encourage tax resistance or undermine lawful tax administration, but to provide a credible avenue for legitimate grievances.

Digital reforms and 67 million BVN holders

Nwabueze said technology alone cannot resolve the trust problem, despite the transformation brought by the FinTech revolution. Digital reforms must make the tax system simpler, more accessible and more responsive rather than create additional barriers for taxpayers.

He pointed to Nigeria's growing digital identity base. With roughly 67 million BVN holders already captured in the formal tax net, he said collaboration among banks, fintechs and regulators remains essential to ensure that expanded digital identity translates into fairer, not merely more efficient, tax administration.

He urged financial journalists to explain the practical difference between lawful tax planning and tax evasion, investigate how administrative complaints are handled, and report on how tax revenue translates into visible public services.

Bank capital, complaints and state levies

FICAN Chairman Mr Chima Nwokoji said Nigerian banks raised a combined N4.65 trillion over a 24-month recapitalisation exercise, with about 73% of the capital coming from domestic investors. He contrasted this with the Dangote Refinery IPO, which is expected to raise approximately N2.15 trillion if fully subscribed, and questioned whether newly raised banking capital is translating into lending, job creation and foreign exchange generation.

On the tax side, Nigeria's tax-to-GDP ratio stood at 8.2% in 2023, according to Nwabueze, compared with roughly 16% across some 38 comparable African economies. He cited a market trader in Ilorin who questioned how tax reform benefits her when she faces multiple informal levies from different officials despite having already paid.

The Office reported receiving more than 20 genuine complaints within its first three months of operation, with most involving disputes over state-level revenue services rather than federal taxes. Finance Minister Taiwo Oyedele formally unveiled the Office's digital case management portal, website and toll-free call centre earlier in 2026 to provide accessible channels for taxpayers to raise disputes.

The Joint Revenue Board disclosed in July 2026 that 16 of Nigeria's 36 states had adopted a harmonised Taxes and Levies framework aimed at eliminating multiple taxation. Dr John Nwabueze was appointed Nigeria's first Tax Ombudsman by President Bola Tinubu in November 2025 under the Joint Revenue Board of Nigeria (Establishment) Act, 2025.

Nwabueze urged journalists to measure the success of the reform agenda not only by revenue collected, but also by whether taxpayers understand their obligations, legitimate complaints are resolved fairly and public confidence in tax institutions improves.

For Nigerian businesses and consumers, the warning puts taxpayer experience at the centre of the reform debate. If complaints are resolved and multiple levies are reduced, compliance could improve. If trust remains weak, revenue targets may stay fragile.