PROMOTING FAIRNESS IN TAX ADMINISTRATION

Taxation is one of the most important instruments through which governments finance public services, build infrastructure and drive national development. Yet, the success of any tax system depends not only on the laws governing revenue collection but also on the confidence citizens have in the institutions responsible for administering those laws.

This is why the establishment of the Office of the Tax Ombud (OTO) by President Bola Ahmed Tinubu deserves recognition as an important step towards strengthening fairness, accountability and public confidence in Nigeria’s tax administration.

At a time when the Federal Government is pursuing significant reforms to improve revenue generation, the need to ensure that taxpayers are treated fairly cannot be overstated. Nigerians must understand their tax obligations, while revenue authorities must be prepared to explain their decisions, respect due process and provide accessible channels through which legitimate complaints can be resolved.

These were among the central issues that emerged at the stakeholders’ town hall meeting organised by the Office of the Tax Ombud in Abuja. Held under the theme, “Promoting Fairness in Tax Administration in Nigeria,” the meeting brought together representatives of professional bodies, labour unions, business associations, market organisations, the media and tax and revenue authorities.

The gathering provided an opportunity to examine how Nigeria can build a revenue administration system that encourages compliance without exposing citizens and businesses to arbitrary assessments, unnecessary administrative burdens or unfair treatment.

Participants commended President Tinubu for establishing the Office of the Tax Ombud, describing it as a potentially valuable avenue for taxpayers seeking impartial consideration of grievances arising from tax and revenue administration. The pioneer Tax Ombud and Chief Executive, Dr John Nwabueze, also received commendation for his leadership and efforts to position the institution as a credible mechanism for addressing administrative complaints.

The significance of this development lies in a simple but important principle: tax compliance is more sustainable when citizens believe that the system collecting their money is fair.

A government may enact comprehensive tax laws and deploy sophisticated revenue collection mechanisms, but these measures will not achieve their full potential if taxpayers perceive the system as unpredictable, inaccessible or indifferent to their concerns. Where citizens believe that they have no effective avenue for challenging administrative errors or unfair treatment, resentment can undermine voluntary compliance.

The Office of the Tax Ombud offers an opportunity to address this challenge by providing an independent, impartial and non-judicial mechanism for handling eligible complaints relating to the operational, procedural and administrative aspects of tax and revenue administration.

Musa Wada, Abuja