WHY NIGERIA NEEDS A STRONG TAX OMBUD

The success of tax reform will ultimately depend on public acceptance, argues MUSA WADA

Nigeria’s tax system is undergoing one of the most consequential transformations in the country’s economic history. Under President Bola Ahmed Tinubu, the Federal Government is pursuing far-reaching reforms aimed at broadening the tax base, improving compliance, strengthening domestic revenue mobilisation and creating a more efficient tax administration system.

But there is an important principle that must guide this process: a successful tax system is not defined only by how much government collects, but also by how fairly it treats those from whom it collects.

That is why the Tax Ombud has become particularly important at this stage of Nigeria’s development.

The institution occupies a sensitive position between government’s legitimate interest in collecting revenue and the rights of taxpayers. Its importance lies in providing a credible avenue through which individuals and businesses can raise legitimate concerns about tax administration and seek appropriate redress.

At the centre of this responsibility is Dr John C. Nwabueze, appointed by President Tinubu as Tax Ombud and Chief Executive Officer in September 2025. His appointment comes at a time when the government is seeking to fundamentally change Nigeria’s tax culture. For decades, taxation has largely been discussed from the perspective of government revenue. But a modern tax system must also consider the experience of the taxpayer.

Government needs revenue to fund infrastructure, security, education, healthcare and other public services. Taxpayers, in turn, are entitled to expect that assessments and administrative procedures will be conducted lawfully, transparently and professionally.

When taxpayers believe that the system is arbitrary or that there is no credible mechanism for resolving grievances, confidence suffers. When they believe that the rules are clear and that legitimate complaints can be heard, voluntary compliance becomes easier to sustain.

This is the space the Tax Ombud is expected to occupy. Its role should not be misunderstood as opposition to revenue authorities. Rather, it should contribute to improving the quality and credibility of tax administration by ensuring that taxpayer concerns receive appropriate attention and that recurring administrative problems are identified.

That function is particularly relevant as Nigeria implements its current tax reforms.

The country urgently needs to increase domestic revenue. Excessive dependence on borrowing and volatile revenue sources has constrained government’s ability to plan and finance development sustainably. A broader and more efficient tax base is therefore essential.

But the pursuit of higher revenue must be accompanied by fairness.

Revenue collection that creates widespread distrust can ultimately undermine compliance. A tax system works better when taxpayers understand their obligations, have confidence in the process and know where to turn when they encounter genuine administrative difficulties.

This is especially important for small businesses and individual taxpayers, who often lack the financial resources to engage tax specialists whenever they encounter complex regulatory questions.

The Tax Ombud therefore has an important public education role. Nigerians need to understand not only what the law requires of them, but also the protections available to them within the tax administration framework.

This is essential to building a mature tax culture.

The relevance of the institution also extends beyond individual complaints. Properly handled grievances can reveal patterns of administrative difficulty. If similar concerns are repeatedly raised by taxpayers, they may point to weaknesses in procedures, communication or implementation.

The Tax Ombud can use such information to encourage improvements across the system.

In this respect, the institution can serve both taxpayers and government.

Its effectiveness, however, will depend heavily on credibility. Taxpayers must have confidence that the office can listen to their concerns fairly, while revenue authorities must recognise it as an institution capable of contributing constructively to better administration.

That requires professionalism, balance and institutional independence.

It is against this background that the professional profile of Dr Nwabueze becomes relevant.

His career brings together mathematics, accounting, finance, taxation, economic policy, legislative advisory work and international professional experience.

He holds a Bachelor of Science degree in Mathematics from the University of Jos, Bachelor’s and Master’s degrees in Accounting from Strayer University in Washington, DC, and a Doctor of Business Administration degree with a concentration in Finance from Walden University.

Before his appointment as Tax Ombud, he served as Technical Consultant to the Joint Senate Committees on the Federal Capital Territory and Finance of the 7th National Assembly. According to his professional profile, his responsibilities included advisory work on matters relating to revenue administration and the development of revenue institutions.

He also served as Special Assistant on Economy to Chief Philip C. Asiodu, then Chief Economic Adviser to President Olusegun Obasanjo, and later headed PAEI, an economic think tank in Abuja.

His professional experience in the United States provides an additional international perspective. He is an Enrolled Agent with the United States Internal Revenue Service and has professional affiliations within the American accounting and tax environment.

Such experience is relevant to a tax system operating in an increasingly interconnected global economy. Nigerian businesses participate in international commerce, digital transactions are expanding, and tax authorities worldwide are adapting to increasingly complex financial activities.

Nevertheless, the ultimate test of the Tax Ombud will not be academic credentials or professional affiliations. It will be the institution’s impact on the relationship between taxpayers and the state.

Can ordinary Nigerians understand its role?

Can businesses approach it when they encounter legitimate administrative difficulties?

Can it identify systemic problems and encourage corrective action?

Can it protect taxpayer interests without frustrating lawful revenue collection?

These are the questions that will determine whether the office becomes an influential institution or simply another government agency.

The answers will depend not only on its leadership but also on how seriously the Federal Government supports its mandate.

The Tax Ombud should be adequately resourced, accessible to the public and sufficiently empowered to perform its responsibilities effectively. Its work should be communicated widely so that taxpayers understand where it fits within the broader tax administration system.

This is particularly important under the Tinubu administration because the success of tax reform will ultimately depend on public acceptance.

A new tax culture cannot be created by enforcement alone. Nigerians must understand why taxation matters and see evidence that the system operates according to clear rules.

Government, for its part, must recognise that taxpayer protection is not an obstacle to revenue mobilisation. It is part of what makes revenue mobilisation sustainable.

A fair system encourages compliance. A predictable system supports business confidence. An accountable system strengthens public trust.

These are not competing objectives.

Nigeria therefore needs to see the Tax Ombud as part of the wider architecture of tax reform rather than as a peripheral institution.

The office represents an important safeguard at a time when government is asking citizens and businesses to participate more actively in financing national development.

Alhaji Wada is a Public Affairs Analyst