FG pushes for digital, harmonised tax, says trust is key

Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele

Federal Government has reaffirmed its commitment to digitising Nigeria’s tax administration and harmonising revenue collection across the three tiers of government.

The commitment was reiterated yesterday at a one-day stakeholders’ engagement organised by the Office of the Tax Ombud (OTO) in Lagos, themed “Promoting Fairness, Transparency and Trust in Nigeria.”

Representing the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, Head of Fiscal and Tax Reforms at the Nigeria Revenue Service, Olufemi Olarinde, said the reform agenda is anchored on ensuring that taxpayers “pay their fair share only, and nothing more,” rather than operating a system where compliant taxpayers shoulder a disproportionate burden while others exploit loopholes through discretion and opacity.

According to him, the government is pursuing two major reforms—digitisation and harmonisation of revenue collection to achieve a more transparent and efficient tax administration.

He said digitising tax processes would reduce human discretion, curb corruption and inefficiency, and provide both taxpayers and government with real-time visibility of tax obligations and compliance.

On harmonisation, he noted that the multiplicity of taxes and fragmented collection mechanisms across federal, state and local governments have increased compliance costs for businesses and weakened confidence in the tax system.

He said a harmonised framework would improve revenue tracking, strengthen accountability and ensure that tax proceeds are deployed for national development.

According to Olarinde, the ultimate objective of the reforms extends beyond higher revenue generation to rebuilding taxpayer confidence.

Earlier, the Chief Executive Officer and Tax Ombud, John Nwabueze, said the office had made significant progress since its establishment under the Joint Revenue Board (Establishment) Act, 2025.

He listed the achievements to include the rollout of governance and complaint-handling frameworks, deployment of a technology-driven case management system and the establishment of a toll-free call centre.

President of the Nigerian Bar Association (NBA), Afam Osigwe, said although the establishment of the Tax Ombud was a positive development, the enabling law does not provide the office with sufficient independence to effectively mediate disputes between taxpayers and revenue authorities.

He noted that matters involving the interpretation of tax laws remain within the jurisdiction of the Tax Appeal Tribunal, while the law neither makes the Ombud’s decisions binding nor requires taxpayers to approach the office before proceeding to the Tribunal or the courts.

Osigwe also observed that tax authorities can continue enforcement actions while disputes are pending before the Ombud, a provision he said could undermine the office’s effectiveness.

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