Nigeria's Tax Ombud has cautioned that structuring tax reforms primarily around revenue targets could erode taxpayer confidence and undermine the long-term viability of the fiscal system.
The warning came in a speech by Dr. John Nwabueze, Nigeria's first Tax Ombudsman, delivered on his behalf by his Chief of Staff, Dr. Peter Iwegbu, at the 36th anniversary conference of the Finance Correspondents Association of Nigeria (FICAN) in Lagos at the weekend. The event carried the theme "Building on the Gains of Recapitalisation, Tax Reforms, and Fintech Revolution."
Nwabueze argued that revenue growth and taxpayer confidence should not be treated as competing goals. When administration is fair and transparent, the two objectives reinforce each other. He described the trust deficit as a more urgent challenge behind Nigeria's low tax-to-GDP ratio, cautioning that legislation and enforcement alone cannot deliver sustainable revenue growth.
"Nigerians cannot build a sustainable revenue and tax system by focussing only on what the citizens and business must pay. We must also focus on why they should trust the system through which they pay," he said.
He added: "Taxpayers are entitled to an administration that is also fair, transparent, accountable, and consistent with the law. They have to understand what they are being asked to pay, why they are being asked to pay for it, what avenues are available for them, if they believe that they have been unfairly treated."
The Ombud stressed that the office was established neither to encourage tax resistance nor to weaken lawful tax administration, but to give taxpayers a credible channel through which legitimate grievances can be considered and resolved.
On digital reforms, Nwabueze said technology alone cannot close the trust gap. He noted that roughly 67 million BVN holders are already captured in the formal tax net and called for collaboration among banks, fintechs and regulators to ensure that expanded digital identity produces fairer, not merely more efficient, tax administration.
He urged financial journalists to explain the practical difference between lawful tax planning and tax evasion, examine how administrative complaints are handled and report on how tax revenue translates into visible public services.
