Nigeria digitises tax system to curb corruption, cut compliance costs

The Federal Government has disclosed that digitising Nigeria’s tax administration is central to ongoing fiscal reforms, adding that the move will reduce human discretion, curb corruption and improve transparency in tax collection.

While speaking at a one-day stakeholders’ engagement organised by the Office of the Tax Ombud (OTO) in Lagos, Olufemi Olarinde, head of Fiscal and Tax Reforms at the Nigeria Revenue Service (NRS), who represented the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele said digitisation and the harmonisation of tax collection remain the twin pillars of the government’s tax reform agenda.

According to Olarinde, digitising tax processes will provide taxpayers and government with real-time visibility into tax obligations and compliance while reducing inefficiencies associated with manual processes.

He said the reforms are designed to ensure that taxpayers “pay their fair share only, and nothing more,” rather than sustaining a system where compliant taxpayers bear a disproportionate burden while others exploit loopholes created by discretion and opaque processes.

“Digitising tax processes will reduce human discretion, curb corruption and inefficiency, and provide both taxpayers and government with real-time visibility of tax obligations and compliance,” he said.

Olarinde added that the government is also pursuing the harmonisation of revenue collection across the federal, state and local governments to simplify tax administration and lower the cost of compliance for businesses.

He noted that multiple taxes and fragmented collection mechanisms have increased compliance costs, discouraged voluntary compliance and weakened confidence in the tax system.

According to him, a harmonised framework would strengthen revenue tracking, improve accountability and ensure tax revenues are better deployed for national development.

He stressed that the objective of the reforms extends beyond increasing government revenue to rebuilding trust between taxpayers and revenue authorities through a fairer, more transparent and efficient tax administration.

Earlier, John Nwabueze, chief executive officer and Tax Ombud, said the Office of the Tax Ombud has recorded significant milestones since its establishment under the Joint Revenue Board (Establishment) Act, 2025.

He said the office has developed governance and complaint-handling frameworks, deployed a technology-driven case management system and established a toll-free call centre to improve access to its services.

Also speaking, Afam Osigwe, president of the Nigerian Bar Association (NBA), said while the establishment of the Tax Ombud represents a positive step in strengthening taxpayer protection, the enabling law does not provide the office with sufficient independence to effectively resolve disputes between taxpayers and revenue authorities.

Osigwe noted that issues relating to the interpretation of tax laws remain under the jurisdiction of the Tax Appeal Tribunal, while the law neither makes the Ombud’s decisions binding nor requires taxpayers to exhaust the Ombud process before approaching the Tribunal or the courts.

He added that allowing tax authorities to continue enforcement actions while disputes are pending before the Ombud could undermine the office’s effectiveness in resolving tax complaints.