Nigeria Tax Ombud calls for trust-driven reforms to boost revenue

The Office of the Tax Ombud has called for a trust-based tax system in Nigeria, warning that revenue growth objectives may fail if they are not accompanied by increased taxpayer confidence. Speaking at the 36th anniversary conference of the Finance Correspondents Association of Nigeria (FICAN) in Lagos, Tax Ombud Dr. John Nwabueze emphasized that revenue growth and taxpayer trust should be mutually reinforcing rather than competing goals.

Nwabueze highlighted that Nigeria’s tax-to-GDP ratio stood at 8.2 percent in 2023, significantly lower than the 16 percent average across 38 comparable African economies. He noted that closing this gap requires more than mere enforcement; it requires a system where taxpayers understand their obligations and trust that the administration is fair, transparent, and accountable.

Furthermore, the Tax Ombud raised concerns regarding the cumulative burden of multiple taxes, levies, and fees on Nigerian businesses. He warned that duplication and competing demands from various authorities increase the cost and complexity of doing business. While new Tax Acts enacted in 2025 aim to modernize revenue administration, Nwabueze stressed that long-term success depends on institutional confidence and the ability of businesses to navigate the system without facing illegitimate charges.