Nigeria Tax Ombud: Warns Against Multiple Levies, Arbitrary Assessments

• Dr. John Nwabueze, Chief Executive of the Office of the Tax Ombud, warned that arbitrary tax assessments and multiple levies could erode public confidence in Nigeria's tax reforms.
• The Office of the Tax Ombud, established under the Joint Revenue Board of Nigeria (Establishment) Act 2025, provides an independent channel for resolving administrative tax complaints.
• The Ombud's operations are guided by five principles, including equity, procedural justice, and the protection of vulnerable taxpayers.
• Stakeholders raised concerns about practical issues like collections without receipts and unclear assessments, particularly in FCT markets.
• A Taxpayer Charter is being developed in multiple languages to explain taxpayer rights and responsibilities, emphasizing consistent and proportionate tax administration.

Lawyers and compliance officers should be acutely aware of the Ombud's principles and the rights enshrined in the forthcoming Taxpayer Charter.

Dr. John Nwabueze, the Chief Executive of the Office of the Tax Ombud, has issued a significant warning regarding the potential for arbitrary tax assessments, multiple levies, and inconsistent enforcement to undermine public trust in Nigeria's ongoing tax reforms. Speaking at a stakeholders' engagement held in Abuja, Dr. Nwabueze emphasized that such practices could severely erode confidence in the system, which commenced its reforms on January 1, 2026.

His Dr John Nwabueze tax warning underscored the critical need for revenue authorities to uphold taxpayer rights protection Nigeria and ensure that the implementation of new tax legislation does not impose undue or unlawful burdens on individuals and businesses. He asserted that fairness and transparency are not merely optional courtesies but are fundamental pillars for the successful and sustainable mobilization of revenue, forming the very foundation of public trust in the Nigerian tax reform fairness initiatives.

The Office of the Tax Ombud Nigeria, established under the Joint Revenue Board of Nigeria (Establishment) Act 2025, is designed to serve as an independent channel for resolving administrative tax complaints and identifying systemic weaknesses within tax administration. Dr. Nwabueze detailed the ongoing efforts to operationalize this crucial office, including the development of robust governance structures, a sophisticated digital complaint management system, and comprehensive taxpayer education programmes.

Further initiatives include fostering strategic stakeholder partnerships and setting up dedicated call centers to enhance accessibility. The office's operations are guided by five core principles: equity and proportionality, procedural justice, professionalism, transparency and accountability, and the protection of vulnerable taxpayers. To further empower citizens, a Taxpayer Charter is being developed in multiple languages, including English, Hausa, Igbo, Yoruba, and Nigerian Pidgin, to clearly articulate taxpayers' rights and responsibilities.

The call for fair and consistent tax administration resonated with other stakeholders present at the Abuja event. Onya Ojiji, the acting Chief Executive Officer of Abuja Markets Management Limited, represented by Faruk Baffa, highlighted practical challenges faced by traders in the Federal Capital Territory. These included the prevalence of multiple levies, collections made without proper receipts, unclear assessment bases, and the activities of unauthorized agents, all of which contribute to a perception of unfairness.

Ojiji pledged the organization's commitment to supporting efforts aimed at educating traders about their rights, discouraging unauthorized collections, and providing valuable feedback to the Tax Ombud. Similarly, Innocent Ohagwa, President of the Chartered Institute of Taxation of Nigeria, advocated for sustained public education to ensure widespread understanding and compliance. Dr. Nwabueze reiterated that tax obligations must be administered consistently and proportionately, emphasizing that exemptions and reliefs, particularly for eligible small businesses, must be effectively communicated and respected, ensuring no taxpayer faces unlawful or avoidable administrative burdens.

The establishment of the Office of the Tax Ombud and its proactive stance against arbitrary assessments and multiple levies represents a significant development for legal and compliance professionals. This new body provides an independent avenue for challenging administrative tax complaints, offering a critical mechanism for taxpayer rights protection Nigeria. Lawyers and compliance officers should be acutely aware of the Ombud's principles and the rights enshrined in the forthcoming Taxpayer Charter.

Understanding these provisions is essential for advising clients on their entitlements and obligations, particularly in navigating the complexities of the new tax laws. The Ombud's commitment to fairness, transparency, and the protection of vulnerable taxpayers underscores a shift towards more equitable tax administration, making it imperative for practitioners to integrate this new channel into their compliance strategies to ensure clients receive fair treatment and avoid unlawful burdens.

Lawyers and compliance officers should be aware of the newly established Office of the Tax Ombud in Nigeria as an independent channel for resolving administrative tax complaints. This provides a new avenue for challenging arbitrary assessments and multiple levies, and practitioners should advise clients on their rights and the Ombud's principles to ensure fair tax administration and compliance with the new tax laws.

Source: Original reporting via The Punch