One in five Nigerian households and businesses face delays of more than a month when attempting to resolve tax-related grievances, according to the Nigerian Economic Summit Group (NESG).
The findings, contained in the NESG Tax Perception Survey Report 2026, indicate that these delays, alongside instances where complaints are rarely resolved, are common within the country’s tax administration framework.
While the report noted that 60.5 per cent of respondents reported certain outcomes, the 20 per cent who experience prolonged wait times or infrequent resolutions represent a significant portion of the taxpaying population.
Administrative hurdles and economic consequences
Tax disputes in Nigeria often arise from contested assessments, errors in filings, or disagreements over the jurisdiction of taxing authorities. For many firms, particularly small and medium-sized enterprises (SMEs), a pending tax dispute can lock up essential working capital, limiting their ability to fund daily operations or invest in expansion.
These delays typically involve the Federal Inland Revenue Service (FIRS) and various State Internal Revenue Services (SIRS). When these agencies lack predictable mechanisms for redress, it creates a climate of fiscal uncertainty. This lack of certainty can discourage both domestic investment and foreign direct investment, as businesses struggle to accurately forecast their long-term tax liabilities.
Beyond the immediate financial strain on businesses, inefficient dispute resolution can affect the ease of doing business in Nigeria. A predictable tax environment is essential for investor confidence. When taxpayers feel that the system for correcting errors is slow or unresponsive, it can lead to reduced compliance rates and increased litigation in the Tax Appeal Tribunal.
The NESG findings suggest that improving the speed and transparency of tax administration is necessary for effective revenue mobilization. For the government to meet its fiscal targets, the processes for addressing contested assessments must be made more efficient and more accessible to the average taxpayer.
Industry stakeholders are calling for the further digitisation of tax processes to reduce the human error and administrative bottlenecks that contribute to these delays. The ability of tax authorities to implement these changes will determine whether taxpayer confidence can be restored in the coming years.
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