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For too long, taxation in Nigeria has been viewed with suspicion—an opaque process where citizens pay, sometimes reluctantly, with little confidence in how fairly their contributions are assessed or applied.
President Bola Tinubu’s sweeping 2025 tax reforms, however, may mark a turning point in this story. Central to the reforms is the creation of the Office of the Tax Ombud (OTO), a body designed to mediate disputes, protect taxpayer rights, and bring a fresh sense of fairness and accountability into Nigeria’s tax system.
This is no small development. For decades, taxpayers have often felt at the mercy of tax authorities—sometimes bullied, sometimes ignored, and often entangled in endless litigation.
On the other hand, tax agencies, especially the Federal Inland Revenue Service (FIRS), have battled with low compliance, widespread evasion, and public mistrust. If well implemented, the Ombud could be the bridge that finally narrows this gap of distrust.
At its core, the Ombud is a mediator. It offers a low-cost, simple, and non-judicial platform for resolving complaints—whether against overzealous tax officials, arbitrary assessments, or bureaucratic delays. Unlike the courts, which are expensive and painfully slow, the Ombud promises quicker resolution without a financial burden on taxpayers.
This matters in a country where ordinary business owners and individuals are often intimidated by tax disputes. By guaranteeing a channel to seek redress without fear of reprisals, the Ombud strengthens confidence in the system. A taxpayer who believes the system will treat them fairly is far more likely to comply voluntarily.
But the Ombud is not just about protecting citizens. It also helps the tax authorities themselves. By filtering grievances before they escalate into costly litigation, the Ombud will reduce the pressure on already overburdened tax tribunals and courts. It provides useful feedback to FIRS and other revenue agencies to improve service delivery, identify systemic flaws, and refine policy implementation. In effect, it makes the tax system more efficient for both sides.
Read also: Tinubu urges Nigerians to embrace tax culture
The Legal Backbone
The Office of the Tax Ombud is established under the Joint Revenue Board of Nigeria (Establishment) Act, 2025, one of four major pieces of tax legislation signed by the President. Others include the Nigeria Revenue Service (Establishment) Act, 2025; the Nigeria Tax Administration Act, 2025; and the Nigeria Tax Act, 2025.
The Act grants the Ombud sweeping powers: the right to investigate complaints, review decisions of tax authorities, enter and inspect premises, summon individuals, recommend corrective measures, and even institute legal proceedings on behalf of taxpayers. Crucially, it also empowers the Ombud to act as a watchdog against arbitrary fiscal policies—reporting such policies to the National Assembly if necessary.
This is significant. For once, there will be an independent channel to check abuse of power, not just within tax agencies but even in broader fiscal policy.
Still, there are clear limitations. The Ombud cannot interpret tax laws beyond operational issues, cannot meddle in cases already before courts, and cannot determine liabilities or assessments. In other words, it is not a substitute for tax tribunals or the judiciary. Its role is mediation, oversight, and systemic improvement—not adjudication.
Sceptics may argue that these limitations weaken the Ombud’s bite. But in truth, this balance is necessary. If the Ombud were empowered to replace courts entirely, it would risk overreach and constitutional conflict. Instead, its strength lies in providing quick, fair remedies for everyday grievances, while leaving complex legal disputes to formal judicial processes.
The Ombud’s greatest promise lies in cultural transformation. Nigeria has historically struggled with tax compliance. Too many citizens view taxes not as a civic duty but as a burden imposed by an unaccountable state. By embedding fairness, transparency, and accountability in tax administration, the Ombud could begin reshaping this perception.
As Mrs Lovette Ononuga of the FIRS Taxpayer Services Department aptly put it, the Ombud reflects the government’s recognition of taxpayers’ crucial role in national development.
When citizens feel respected and protected, they are more likely to see themselves as partners in governance rather than victims of exploitation. This aligns neatly with President Tinubu’s “Renewed Hope Agenda”, which places inclusiveness and fairness at the heart of economic reforms.
The Ombudsman model is not new. Sweden pioneered it in 1809, and over time, the idea spread worldwide, taking root in banking, insurance, and taxation. Nigeria’s adoption of a tax ombud follows this global trend. As FIRS official Olufemi Olarinde observed, countries established ombudsmen to enhance taxpayer rights and ensure fairness in administration. Nigeria is simply joining a global best practice, albeit belatedly.
Yet, our context is unique. Unlike countries with higher tax-to-GDP ratios, Nigeria’s tax base remains narrow, and distrust between the government and citizens is high. That means expectations must be managed. The Ombud is not a magic wand. It will not instantly transform Nigeria into a tax-compliant nation. But it can gradually build trust—the missing ingredient in our fiscal system.
Implementation will be the true test. For the Ombud to succeed, it must be independent, transparent, and accessible. Nigerians are wary of institutions that exist only on paper. If the Ombud becomes just another bureaucratic office—slow, compromised, and beholden to political interests; its promise will evaporate.
Moreover, awareness campaigns are critical. Many taxpayers still do not know their rights, let alone the existence of the Ombud. Without aggressive taxpayer education, the office risks being underutilised.
President Tinubu’s new tax regime, and particularly the creation of the Tax Ombud, is a bold experiment in fairness. It seeks to strike a delicate balance: empowering taxpayers without undermining revenue authorities, offering redress without clogging the courts, and promoting compliance without coercion.
Will it work? That depends not just on legislation but on political will, institutional integrity, and public awareness. If executed faithfully, the Ombud could become one of the most citizen-friendly innovations in Nigeria’s fiscal history. If not, it risks being another reform lost in translation.
For now, Nigerians should cautiously welcome this development. At long last, taxpayers may have a voice loud enough to be heard—and an ally strong enough to matter.
Mike Ikosin, a staff member of the Communications and Liaison Department (CLD) of the Federal Inland Revenue Service (FIRS), writes from Abuja.
