The Federal Government of Nigeria’s plan to establish a Tax Ombud marks a potentially transformative step in making taxation more humane. For years, taxpayers have faced an impersonal, often intimidating bureaucracy that views them primarily as revenue sources rather than stakeholders in a social contract. If designed well, the Ombud could provide redress, transparency, and fairness in tax administration.
But the road from good intention to impact is fraught. Nigeria’s political economy is littered with promising reforms that failed due to weak implementation. The Tax Ombud risks the same fate unless lessons are drawn from international models that balance independence, accessibility, and accountability. Drawing on experience with Belgian and EU tax jurisdictions, as well as research into other well-functioning regimes, several pitfalls and mitigations stand out.
The Trust Deficit Factor
Nigeria is attempting to broaden its non-oil tax base amid fiscal constraints, while simultaneously rebuilding trust in public institutions. Public acceptance of taxes depends on perceived fairness. Here, a credible Tax Ombud could serve as a bridge between enforcement and empathy, much like Belgium’s Fiscale bemiddelingsdienst (Tax Mediation Service), which enables dispute resolution quickly, informally, and free of charge.
Yet Belgium’s model highlights a caution: without some binding authority, an Ombud risks being a “complaint box.” Nigeria must retain accessibility but also grant the office teeth to enforce fairness.
Ten Pitfalls to Anticipate
1. Toothless Mandate
A weak legal framework could cripple the Ombud before it begins. If decisions are merely advisory, if it cannot compel responses from tax authorities, or if jurisdiction overlaps confuse matters, the system could collapse.
Mitigation:
- Define clear powers and timelines in law
- Require responses within fixed deadlines
- Grant limited binding authority for procedural matters
- Publish unresolved cases with agency explanations
2. Institutional Capture and Budgetary Dependence
No Ombud can function independently if its budget is controlled by the agencies it oversees. Nigeria’s history shows that budget manipulation is a common method of capture.
Mitigation:
- Ring-fenced budget approved by the National Assembly
- Fixed tenure for the Ombud, removable only for cause
- Quarterly public reports to the legislature and citizens
3. Fragmented Jurisdictions
Nigeria’s tax ecosystem is chaotic, with federal, state, and local levies overlapping. Ombud oversight must cover all tiers to avoid leaving taxpayers stranded.
Mitigation:
- Establish Memoranda of Understanding (MoUs) with state and local boards
- Create a “one-stop complaint intake”
- Publish a yearly competence map detailing which authority handles each tax
4. No Suspension of Deadlines
Administrative delays are common in Nigeria. Unlike Belgium, where deadlines rarely conflict with enforcement, the Ombud must have narrow, time-bound suspension powers, e.g., a 30-day standstill to allow resolution of legitimate complaints.
5. Backlogs and Bureaucratic Delays
Slow processing undermines credibility. Service Level Agreements (SLAs) at each process stage — acknowledgment, admissibility, investigation, resolution — must be legally mandated. Real-time dashboards should be publicly accessible.
6. Weak Data Systems and Poor Interoperability
Effective oversight requires access to tax records, correspondence logs, and payment histories. Nigeria’s data remains siloed across FIRS, state boards, and identity registries (NIN/BVN).
Mitigation:
- Statutory rights of data access for the Ombud
- Interoperable case management platforms
- Quarterly reporting on data bottlenecks
7. Algorithmic Bias and Systemic Injustice
Automated profiling can generate unfair outcomes. The Dutch childcare benefits scandal shows the dangers of biased algorithms.
Mitigation:
- Give the Ombud authority to review systemic or algorithmic practices
- Suspend enforcement actions when bias is evident
- Mandate periodic algorithmic impact assessments
8. Low Awareness and Elite Capture
Only corporations and well-connected taxpayers should not monopolize the service. Accessibility for MSMEs and informal workers is critical.
Mitigation:
- Multilingual complaint channels, including Pidgin and major local languages
- Regional desks and mobile “Ombud clinics”
- Partnerships with civil society, professional associations, and media for outreach
9. Bureaucratic Resistance
Agencies may ignore Ombud queries or downplay recommendations. Transparency is a powerful enforcement tool.
Mitigation:
- Publish quarterly “name and compliance” tables
- Publicly track agency response times and implementation rates
10. Political Turnover and Reform Fatigue
Institutional continuity is often overlooked. Ombud effectiveness depends on consistent leadership and legal protection.
Mitigation:
- Enshrine the Ombud in law
- Fixed leadership tenure
- Annual independent review panels
Measuring Success
Three years after launch, success should be measurable through:
- Average response and resolution times (benchmarked internationally)
- Distribution of cases outside major cities
- Compliance rates with Ombud recommendations
- Reduction in repeated complaints
- Annual taxpayer satisfaction index
Progress in these areas will foster voluntary compliance and increase revenue collection.
The Human Face of Tax Reform
Taxation is not just about revenue collection; it is about reciprocity and trust. Citizens who feel heard comply; those who feel cheated evade. The Tax Ombud can become the human face of Nigeria’s fiscal reforms.
Belgium demonstrates accessibility, the EU demonstrates transparency, and Canada demonstrates enforceable rights. Nigeria has an opportunity to combine all three. Done right, the Ombud could redefine the taxpayer-government relationship. Done poorly, it risks becoming another applauded reform that fades into irrelevance.
References
- PwC Nigeria, The 2025 Fiscal Reforms: Consolidating the Tax Landscape, June 2025
- Belgian Federal Public Service Finance, Fiscale bemiddelingsdienst, accessed 11 October 2025
- European Ombudsman, Annual Report 2024
- Office of the Taxpayers’ Ombudsperson (Canada), Service Standards, 2024
- Dutch Parliamentary Inquiry Committee, Childcare Benefits Scandal Report, 2021
About the Author
Collins Nweke is an International Trade Consultant and Economic Diplomacy researcher. He is a former Green Councillor at Ostend City Council, Belgium, and a Patron of The AfrikaFora. Collins is a Fellow of the Chartered Institute of Public Management of Nigeria and a Distinguished Fellow of the International Association of Research Scholars & Administrators. He writes for The Brussels Times, Proshare, and other global media outlets.
Contact: X: @collinsnweke | E: admin@collinsnweke.eu | W: www.collinsnweke.eu
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Reporting by Naija247news in Lagos, Nigeria.
