Tax authorities and taxpayers are expected to reap the benefits of President Bola Tinubu’s new tax legislation as the nation implements a new tax regime beginning January 1, 2026.
One of the tax legislations (Ombud) is to mediate complaints and resolve grievances arising from tax-related matters from the tax authorities, tax officials, and members of the taxpaying public without a burden on the parties.
The Joint Revenue Board of Nigeria (Establishment) Act, 2025, which provides for the Office of the Tax Ombud (OTO), is among the recent four tax legislations assented to by the President.
The Nigeria Revenue Service (Establishment) Act, 2025, the Nigeria Tax Administration Act, 2025, and the Nigeria Tax Act, 2025 are also recent legislations.
The Ombud is expected to benefit taxpayers by ensuring fair treatment and protection against abuse, delays, or maladministration; it provides a low-cost, simple, and non-judicial way to resolve complaints and build confidence in the tax system, encouraging voluntary compliance, strengthens taxpayer rights and awareness of entitlements; provides an independent channel to resolve disputes and offers quicker complaint resolution as opposed to lengthy legal processes, among other gains to the taxpaying public.
For the tax authorities, the Ombud would promote accountability and integrity, thereby enhancing taxpayers’ voluntary compliance; reduce the backlog of disputes and litigation, and reduce pressure on tax tribunals and courts; and strengthen public trust and credibility, thus enhancing the tax authority’s reputation. It also helps to Provide feedback to improve service delivery and internal processes to improve efficiency in tax administration; identify systemic issues, helping the tax authority reform policies and operations, among others.
Specifically, sections 41, sub-section 1 (a to i) states that “The Office of the Tax Ombud shall have the powers necessary or expedient for the performance of its functions under this Act, including serve as an independent and impartial arbiter to review and resolve complaints relating to tax, levy, regulatory fee and charges, customs duty or excise matters; review complaint against tax officials and authorities and resolve its procedures; receive and investigate complaints lodged by taxpayers regarding the actions or decisions of the tax authorities, agencies or their officials; enter and inspect any premises or place where any tax authority, agency or official performs any function or duty under any law imposing taxes, levies, charges and fees for the purpose of carrying out investigation; invite and examine any person who may have information or evidence relating to a complaint or an investigation; make recommendations of its findings to the revenue authorities and other government agencies on matters relating to taxes, levies, charges and fees, for implementation; institute legal proceedings on behalf of the taxpayer; provide information and raise awareness of taxpayer rights and obligations, functions of the tax authorities and the role of the office of the Tax Ombud; identify and review systemic and emerging issues on fiscal policies and its impact on the tax system, in collaboration with the relevant agencies; serve as a watch-dog against any arbitrary fiscal policy of the Government or by any of its agency and report such policy to the National Assembly; issue guidelines, directives or orders for the resolution of complaints or the implementation of recommendations; and delegate any of the powers or functions to any officer of the Tax Ombud”.
Interestingly, section 41, sub-section 2, states, “In the exercise of its functions under this Act, the Office of the Tax Ombud shall not charge a fee”.
However, in a proviso, section 43 (a to d) of the Act, provides a limitation to the powers and functions as “The Office of the Tax Ombud shall not have jurisdiction to interpret tax legislation other than to the extent that it relates to operational, procedural or administrative issues arising from the application of the provisions of the relevant tax law; review or determine issues that are sub judice before a court of competent jurisdiction or tribunal on the date of the receipt of a complaint; determine any tax liability or duty or issue tax assessment; or review any complaint by or on behalf of a tax official concerning matters relating to the relevant tax authority in respect of any personal grievance relating to the office.
Acting Director, Tax Policy and Advisory Department, Mrs. Bolanle Azeez, and head, Fiscal and Tax Reforms Implementation Division, Mr Olufemi Olarinde, were among the Federal Inland Revenue Service (FIRS) tax experts during the Taxpayer Webinar Series (TWS) on September 23, 2025.
Both practitioners gave perspectives and x-rayed the functions and benefits of the “Ombud” to taxpayers and tax authorities on the applicability of the new OTO operations as the nation transitions to a new tax regime.
For Azeez, the tax Ombud remains a key institution under the new tax legislation: “ It balances the relationship between citizens and other relevant agencies. Its role promotes fairness, transparency, and accountability. Ultimately, it strengthens tax administration and taxpayer trust.”
Olarinde categorised Ombud models into Hybrid, Internal and Independent, adding “The Tax Ombuds model began in the late 20th century as countries sought to enhance taxpayer rights and fair tax administration.
The Ombudsman concept originated in Sweden in 1809, designed to protect citizens against maladministration. The idea spread globally, with specialised ombudsman offices now established for banking, insurance and taxation”.
According to him, Nigeria has now established the Office of the Tax Ombuds to promote transparency, strengthen taxpayer confidence, improve compliance, and ultimately promote sustainable revenue growth.
Speaking on the same issue, the Coordinating Directors, Government and Medium Taxpayers Group (GMTG), Dick Irri, PhD, and Special Duties Group (SDG), Mr Tamadi Shettima, urged staff and taxpaying public to take note of the ongoing reform in the nation’s tax administration.
Irri said that the Ombud is introduced to help taxpayers and tax authorities, saying, “I just want to encourage everyone to take note of this new concept coming on board. In Tax Ombud, in African tradition, we have a belief that you cannot beat a child and not expect the child to cry.
So, taxpayers who may be at risk of repaying or have complained about the attitude of revenue officials or behaviours that are not satisfactory can complain to them. And that is the essence of the Tax Ombud, so to speak, in a layman’s language. It’s not everything that must go to court”.
Also, Shettima described the introduction of the Ombud as a noble initiative that would ensure taxpayers’ rights and privileges are preserved and educate them on their obligations to support efforts to ensure a seamless tax administration in the country.
In the same vein, Mrs Lovette Ononuga, Director, Taxpayer Services Department (TPSD), noted that creating the Ombud under the new tax reform reflects the government’s recognition of taxpayers’ crucial role in the nation’s development.
The new initiative aligns with the president’s “Renewed Hope Agenda,” which emphasised fairness, inclusiveness, and accountability in governance.
Not a few people believe that by embedding the Ombud function in our tax system, the government is not only strengthening revenue mobilisation but also building a tax culture based on trust and mutual respect”, she added.
Two Years of Adedeji At FIRS
The emergence of Zacch Adedeji, PhD, as the Executive Chairman of the Federal Inland Revenue Service (FIRS), began as a whisper before the formal announcement. Although the confirmation of his appointment came three months later, since he assumed office, he has practically demonstrated his capacity to take on the tax and fiscal space headlong with much equanimity expected of the Capricorn that he is.
A Capricorn is disciplined, practical, ambitious, and hardworking. He often takes on leadership roles with a strong sense of responsibility and a “can-do” attitude. This is quintessential Zacch Adedeji, PhD.
Two years on, these qualities have defined the leadership paradigm at the FIRS, shaping its policies and thrusting its administration in a positive direction.
As Zacch Adedeji, marks his second anniversary as the Federal Inland Revenue Service (FIRS) Executive Chairman, Nigerians can attest to his significant strides in transforming the nation’s tax system. He has led the FIRS to surpass revenue targets, introduced a raft of tax reforms, modernised tax administration, and made the FIRS a customer-centric organisation.
Revenue Collection Achievements
Under Adedeji’s leadership, the FIRS has consistently exceeded its revenue targets. In 2023, the agency collected N12.36 trillion or 107% thereby surpassing its target of N11.55 trillion. In 2024, he also collected 21.7 trillion naira against the target of N19.7 trillion.
These remarkable feats demonstrate Adedeji’s ability to drive success through strategic planning and efficiency. Between September 2023 and August 2025, the Service collected a total of ₦46 trillion in tax revenue. This represents: 115% of the combined revenue target of ₦40.07 trillion·
The two-year performance reflects the impact of reforms implemented by the management, which enhanced efficiency in the tax system, expanded the tax base, and improved compliance through digital solutions such as TaxPro-Max, e-Invoicing, and USSD (×829#) services.
Strengthened enforcement measures, inter-agency collaboration, and improved staff welfare further boosted productivity. These measures reduced reliance on oil revenues, strengthened non-oil collections, and enabled the Service to exceed its revenue targets between September 2023 and August 2025.
Tax System Reforms
Adedeji has introduced several initiatives to simplify the tax system and improve the taxpayer experience. These include:
Introducing new tax legislation that aims to reform the obsolete provisions of the tax laws and align the tax system with modern taxation and economic practices. These tax legislations are the Nigeria Tax Act 2025 (NTA), the Nigeria Tax Administration Act 2025 (NTAA), the Joint Revenue Board of Nigeria (Establishment) Act 2025 (JRBA), and the Nigeria Revenue Service (Establishment) Act 2025 (NRSA).
TaxPro-Max: A tax administration system that automates over 80% of manual processes, reducing bureaucracy and enhancing efficiency.
– National Single Window Initiative: A platform that facilitates fast and easy trade operations at ports, harmonising government revenue and promoting economic growth
– One-Stop Shop: A streamlined tax office operation that caters to diverse taxpayers by category, improving customer satisfaction and reducing complaints.
– Unbundling of administrative groupings in the Service: The groupings were hitherto based on tax types, but Adedeji’s model is based on functions designed to increase the taxpayer experience.
Digital Innovation
The FIRS has made significant strides in digital innovation under Adedeji’s leadership. He has effectively introduced new integrated modules on: Automation of tax processes and enhancing efficiency in tax payment; leveraged technology: To block revenue leakages, ramp up revenue collection, and enhance taxpayer experience; expanded integrated tax administration systems: Creating seamless, efficient, and transparent processes that redefine the taxpayer experience.
Adedeji led the team that established self-service centres in the field offices to help taxpayers navigate the seamless tax payment processes.
Customer-centric focus of the Service:
In FIRS, there are three recognised categories of customers: taxpayers, vendors, and staff. Understood in this sense, Adedeji emplaced processes that ensure effective customer mapping and customer satisfaction journey. He underscored his customer-centric approach to tax administration by saying, “We are committed to fair tax administration through responsive and accessible service to optimise revenue for national development.
Notwithstanding these achievements, Adedeji remains focused on improving Nigeria’s tax-to-GDP ratio, which is far below the African average. To address this, the FIRS has set an ambitious target to raise the ratio to 18% within the next few years. As Adedeji embarks on his second year at the FIRS, Nigerians should expect more successes as he leverages his expertise to advance Nigeria’s economic growth and fiscal sustainability. With a clear vision and strategic roadmap, the FIRS is poised to continue playing a pivotal role in shaping the country’s future.
