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NBA Backs Tax Ombud Reform, Warns of Conflict of Interest Under Finance Ministry

The Nigerian Bar Association (NBA) has thrown its weight behind efforts to strengthen the Office of the Tax Ombud, but warned that the institution’s independence remains threatened so long as it and the Nigeria Revenue Service both answer to the Federal Ministry of Finance.

The NBA made the call during a stakeholders’ engagement themed “Promoting Fairness, Transparency and Trust in Tax Administration in Nigeria” organised at Lagos Continental Hotel by the Office of the Tax Ombud on Thursday.

In his welcome remarks and overview of the agency, Dr. John C. Nwabueze, Chairman and Chief Executive Officer of the Office of the Tax Ombud, disclosed that amendments to the law establishing the office are already being pursued with the National Assembly to give it more bite.

“The law that created the Office of the Tax Ombud is not as robust as it should be. As a lawyer, you know that every law is subject to amendment, and we are already working with the National Assembly in that regard,” Nwabueze said.

He revealed one of the key proposals: naming non-compliant tax agencies in reports to the National Assembly.

“When a tax authority chooses to decline a recommendation or resolution from the Office of the Tax Ombud, such action could form part of a report that goes from my office to the National Assembly. I am not sure any head of an agency would want that to happen,” he stated.

Nwabueze admitted the current law leaves the office with limited statutory powers, creating the perception that its decisions are not binding. He said the review will also address weak provisions on tax assessment disputes.

“Resolving tax assessment disputes requires a much deeper framework than what currently exists. That is one of the issues we are discussing with the National Assembly,” he added.

The CEO stressed that the engagement forms part of ongoing consultations to strengthen taxpayer rights, improve dispute resolution, and boost voluntary compliance.

On his part, NBA President, Mazi Afam Josiah Osigwe (SAN), said reforming the Tax Ombud is critical to building taxpayer confidence, but cautioned that structural conflicts could undermine its credibility.

“Can the Tax Ombud effectively exercise its oversight role when both the Ombud office and the tax authority operate under the supervision of the Federal Ministry of Finance?” Osigwe asked participants.

Osigwe acknowledged progress so far but urged stakeholders to stay the course.

“The journey has started. We should see the glass as half full, not half empty. It may not be 100 per cent today, but we are on the right trajectory and we should continue moving forward,” he said.

Speaking further on why the amendment was necessary, he said, “If the Minister issues a guideline and shortly afterwards the Nigeria Revenue Service issues another directive appearing to contradict it, it does not speak well for the system.”

Other participants included representatives of the Institute of Chartered Accountants of Nigeria (ICAN), the Chartered Institute of Taxation of Nigeria (CITN), the Association of National Accountants of Nigeria (AN), and the Chartered Institute of Bankers of Nigeria (CIBN).

Delivering the vote of thanks on behalf of the Office of the Tax Ombud, Harriet Okoro appreciated all participants.

Her words, “Your presence, insightful contributions, and constructive discussions have made this session both enriching and impactful. Our special appreciation goes to our distinguished panelists for generously sharing your expertise and perspectives.

“Your thoughtful contributions have deepened our understanding of the issues discussed. To all stakeholders, your support remains invaluable as we work together to build a fair, transparent, and responsive tax administration. On behalf of the Office of the Tax Ombud, thank you all for coming.”