Kaduna: N220bn Tax Revenue Dialogue Highlights Voluntary Compliance

• Kaduna State generated ₦220 billion in tax revenue between 2023 and 2025 by prioritizing dialogue and voluntary compliance over aggressive enforcement.
• Commissioner for Finance, Mohammed Ibrahim Tanko, highlighted this achievement at a North-West Zonal Stakeholders’ Engagement Meeting in Kaduna.
• The Office of the Tax Ombud, an independent body, offers free services to address operational and administrative tax complaints, including instituting lawsuits on behalf of taxpayers.
• Dr. John Nwabueze, CEO of the Tax Ombud, clarified that the agency does not cancel legitimate tax liabilities or shield taxpayers from their lawful obligations.
• Kaduna State has redirected tax revenues towards infrastructure and development projects to ensure taxpayers see tangible benefits from their contributions.

Kaduna State successfully generated approximately ₦220 billion in tax revenue between 2023 and 2025 by prioritizing sustained engagement with taxpayers and fostering voluntary compliance, rather than resorting to aggressive enforcement tactics.

Kaduna State achieved a significant milestone by generating approximately ₦220 billion in tax revenue between 2023 and 2025, a feat accomplished without employing aggressive enforcement measures against taxpayers. This impressive revenue performance was disclosed by Mohammed Ibrahim Tanko, the Commissioner for Finance, who represented Governor Uba Sani at the North-West Zonal Stakeholders’ Engagement Meeting in Kaduna. The event, focused on "Promoting Fairness in Tax and Revenue Administration," was organized by the Office of the Tax Ombud.

Commissioner Tanko highlighted that Kaduna's contribution of ₦220 billion formed a substantial portion of the North-West geopolitical zone's total tax revenue of about ₦916 billion during the same period. He attributed this success directly to consistent engagement with taxpayers, businesses, and other stakeholders, which cultivated a culture of voluntary compliance within the state. Tanko emphasized that effective stakeholder engagement is a clear and significant indicator that substantial revenue can be generated without resorting to harsh collection tactics.

Furthermore, the Kaduna State Government has strategically reoriented the deployment of its internally generated revenue. The administration now places a greater emphasis on funding critical infrastructure and other development projects, moving away from a previous focus that might have primarily covered civil servant salaries. This shift aims to ensure that taxpayers can observe tangible benefits from their contributions, thereby reinforcing their willingness to comply voluntarily.

During the North-West Zonal tax engagement, Dr. John Nwabueze, the Chief Executive Officer of the Office of the Tax Ombud, underscored the importance of a balanced relationship between taxpayers and revenue authorities. He detailed the agency's mandate as an independent, impartial, and non-judicial institution specifically established to address complaints related to taxes, levies, regulatory fees, charges, customs, excise, and duties. The Ombud's primary focus is on resolving operational, procedural, and administrative issues within tax and revenue administration.

To enhance accessibility for taxpayers, the Office of the Tax Ombud has introduced several platforms, including a digital complaint portal, a case management system, and a toll-free call centre. All services provided by the Ombud are free of charge to taxpayers, and the law even permits the agency to initiate lawsuits on behalf of taxpayers without any cost to them. This commitment to accessible and free services aims to foster fair tax administration across Nigeria.

Commissioner Tanko advocated for the establishment of a zonal office for the Tax Ombud in Kaduna. He believes such a presence would significantly deepen dialogue among government, businesses, professionals, and other stakeholders, ultimately leading to improved tax administration practices throughout the North-West region.

While emphasizing the supportive role of the Office of the Tax Ombud, Dr. Nwabueze issued a clear caution against misinterpreting its function as a means to evade legitimate tax obligations. He explicitly stated that the agency is not a mechanism for cancelling valid tax liabilities simply because a taxpayer wishes to avoid payment. The Ombud does not formulate tax policy, encourage non-compliance, or shield taxpayers from their lawful duties, nor does it function as a judicial court.

Instead, the agency's purpose is to ensure that tax authorities conduct revenue collection transparently and adhere strictly to due process. This distinction is crucial for maintaining the integrity of the tax system while providing a vital avenue for taxpayers to seek redress for administrative and procedural grievances. The Ombud's services are designed to promote voluntary tax compliance by ensuring fairness and accountability in the collection process, rather than undermining it.

This article indicates a strategic shift in tax administration in Kaduna State towards dialogue and voluntary compliance. Lawyers and compliance officers should advise clients on the benefits of proactive engagement with tax authorities and leverage the Office of the Tax Ombud for resolving procedural and administrative tax issues, potentially mitigating aggressive enforcement and litigation.

Source: Reporting based on statements made at the North-West Zonal Stakeholders’ Engagement Meeting.