Nigeria requires an independent tax ombud to protect taxpayer rights and ensure the fairness of ongoing fiscal reforms, according to policy advocates and economic observers.
The call for a dedicated watchdog emerges as the administration of President Bola Ahmed Tinubu pursues a massive overhaul of the nation’s tax architecture. These reforms aim to broaden the tax base, improve compliance, and strengthen domestic revenue mobilisation to reduce the country’s reliance on external debt.
Without a neutral mediator to oversee tax administration, the drive for increased revenue risks creating friction between the Federal Inland Revenue Service (FIRS), state revenue agencies, and the private sector. Experts argue that the need for a robust tax ombud is essential to prevent administrative excesses and ensure that the quest for revenue does not infringe upon the legal rights of citizens and businesses.
Ensuring fairness in tax administration
A tax ombud would function as an independent office tasked with investigating complaints of unfair treatment, mismanagement, or harassment by tax authorities. Unlike the courts, which can be slow and expensive, an ombud provides a more accessible mechanism for resolving disputes between taxpayers and the government.
The role of such an office involves monitoring the conduct of tax officials, reviewing administrative processes, and recommending changes to improve transparency. This is particularly critical as the government attempts to simplify the tax system, a move closely tied to improving the ease of doing business in Nigeria through tax harmonisation.
Current tax enforcement efforts focus on digitising collections and identifying new revenue streams. However, as the government intensifies its pursuit of compliance, the risk of arbitrary assessments and aggressive collection tactics increases. An ombud would act as a buffer, ensuring that while the government meets its revenue targets, it does so within the bounds of justice and due process.
The establishment of such a body would require legislative backing, likely through an amendment to existing tax laws or a new piece of legislation. While the government has focused heavily on the technical aspects of revenue collection, the institutional framework to protect taxpayers remains a significant gap in the current reform agenda.
The effectiveness of the proposed ombud will depend on its level of autonomy from the executive branch and its power to enforce recommendations. Until then, the tension between revenue mobilisation goals and taxpayer protections remains a central challenge for Nigeria’s economic stability.
