- Government says technology, tax harmonisation and stronger taxpayer protection are central to creating a fairer revenue system
Nigeria Pushes Digital Tax Overhaul. Nigeria is intensifying efforts to modernise its tax administration, with the Federal Government placing digitalisation, tax harmonisation and taxpayer trust at the centre of its ongoing fiscal reform agenda.
At a stakeholders’ engagement organised by the Office of the Tax Ombud (OTO) in Lagos, government officials, tax professionals, business groups and legal experts examined how technology and institutional reforms could reshape Nigeria’s tax landscape while improving voluntary compliance.
The discussions highlighted that the objective extends beyond increasing revenue collection. Instead, policymakers say the long-term goal is to create a tax system that is transparent, predictable and trusted by both individuals and businesses.
Nigeria Pushes Digital Tax Overhaul: Digital Tax Administration Takes Centre Stage
Speaking on behalf of the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, Olufemi Olarinde, Head of Fiscal and Tax Reforms at the Nigeria Revenue Service (NRS), said technology remains one of the government’s most important tools for improving tax administration.
According to him, digitising tax processes will reduce excessive human intervention, minimise corruption risks and provide taxpayers with greater visibility over their tax obligations.
He explained that digital platforms can also help tax authorities monitor compliance more efficiently while making tax administration faster and more predictable.
The reforms, he said, are designed around a simple principle: taxpayers should pay only what they legitimately owe—no more and no less.
Harmonising Revenue Collection Across Government
Beyond digitisation, the Federal Government is also seeking to harmonise tax administration across federal, state and local governments.
Officials noted that Nigeria’s fragmented revenue collection system has often resulted in overlapping taxes, multiple collection agencies and higher compliance costs for businesses.
A harmonised framework, they argued, would simplify compliance, improve revenue tracking and strengthen accountability across all levels of government.
Reducing duplication is also expected to improve the country’s investment climate by making tax obligations easier for businesses to understand and fulfil.
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Why Trust Matters
A recurring message throughout the event was that successful tax systems depend heavily on public confidence.
According to government officials, taxpayers are more likely to comply voluntarily when they believe the system is fair, transparent and free from arbitrary enforcement.
As Olarinde noted during the engagement, trust—not enforcement alone—is ultimately what sustains an effective tax administration.
The reforms therefore seek to reduce discretion in tax administration while creating clearer rules that apply consistently to all taxpayers.
Strengthening Taxpayer Protection
Another major focus of the discussions was the role of the Office of the Tax Ombud, which was established under the Joint Revenue Board (Establishment) Act, 2025.
The Office was created to provide taxpayers with an independent platform for resolving complaints and improving accountability within the tax system.
According to Tax Ombud and Chief Executive Officer, Dr John Nwabueze, the institution has already introduced several initiatives, including:
- A technology-driven case management system
- Digital complaint handling processes
- A dedicated taxpayer support platform
- A toll-free customer service centre
- Governance and dispute-resolution frameworks
These initiatives are intended to make it easier for taxpayers to raise concerns while encouraging more transparent interactions with revenue authorities.
Calls for Greater Independence
Despite welcoming the establishment of the Office of the Tax Ombud, several stakeholders argued that its effectiveness could be strengthened further.
Nigerian Bar Association (NBA) President Afam Osigwe observed that the current legal framework gives the Office limited powers because its decisions are largely advisory rather than binding.
He noted that taxpayers are not required to seek redress through the Ombud before approaching the Tax Appeal Tribunal or the courts.
He also pointed out that tax authorities may continue enforcement actions while complaints remain under review, potentially reducing the Office’s ability to provide meaningful relief.
According to Nwabueze, discussions are already underway with the National Assembly on proposals that could strengthen the Office’s statutory powers.
Business Community Wants Broader Tax Base
Private sector representatives also used the engagement to call for reforms that broaden Nigeria’s tax base rather than increase pressure on already compliant taxpayers.
Representatives of business organisations noted that multiple audits, overlapping compliance requirements and repeated investigations increase the cost of doing business and discourage investment.
They urged government to focus on expanding taxpayer registration, simplifying compliance procedures and improving coordination among revenue authorities.
Lagos Highlights Digital Revenue Platform
The Lagos State Government also shared its own digital transformation efforts.
According to the Special Adviser to the Governor on Taxation and Revenue, Abdul Kabir Ogungbo, the Lagos Revenue Portal was introduced to centralise tax billing, payments, reconciliations and refunds through a single digital platform.
The state plans to extend the platform further by integrating collections from local governments as well as ministries, departments and agencies to simplify compliance for taxpayers.
Africa Tax Review Analysis
Nigeria’s tax reform agenda is increasingly shifting from simply collecting more revenue to building stronger institutions that encourage voluntary compliance.
Digital tax administration has become a common reform priority across Africa, with countries such as Rwanda, South Africa and Kenya also investing in technology-driven tax systems that reduce manual processes and improve taxpayer services.
However, technology alone is unlikely to deliver lasting improvements without strong governance and effective taxpayer protection.
The discussions surrounding the Office of the Tax Ombud highlight an equally important dimension of tax reform: confidence in dispute resolution. Businesses and taxpayers are generally more willing to comply where independent mechanisms exist to address grievances fairly and efficiently.
If Nigeria successfully combines digital innovation with harmonised tax administration and stronger institutional safeguards, the reforms could reduce compliance costs, strengthen public trust and ultimately support more sustainable domestic revenue mobilisation.
As African tax administrations continue modernising their systems, Nigeria’s experience may offer valuable lessons on the importance of balancing technology, transparency and taxpayer rights in building an efficient and trusted tax system.
