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Nigeria will enter a new tax era in 2026, built on its most sweeping reforms yet. The government wants more revenue, fewer leakages, and a wider tax net. For the first time, remote workers, and freelancers are formally captured under income tax.
Salaries are taxed at a maximum of 25%, and businesses earning below ₦100 million ($68,945.07) yearly are exempt, all to push the tax-to-GDP ratio to 18% by 2027, from 10%.
Since the laws were passed in June 2025, most reporting has focused on who will pay more or less. But behind that noise sits an institution that may shape how ordinary Nigerians navigate this new regime: the Office of the Tax Ombud.
For many first-time taxpayers — freelancers, skitmakers, online creators, and small business owners — who now face fines of up to ₦1 million ($689.45) or three years in prison for false income declarations, this office is the place to report unfair assessments, arbitrary penalties, illegal demands, or abusive practices. It is designed as an independent body, the taxpayer’s first line of defence when tax authorities overreach.
And with the government projecting at least ₦17.85 trillion ($12.31 billion) in tax and customs revenue for 2026, the pressure on tax authorities to collect more is building. That pressure is exactly why this office matters.
On November 4, 2025, the government appointed John Nwabueze, a former technical adviser in President Olusegun Obasanjo’s administration, as Nigeria’s first Tax Ombudsman.
“The Office of the Tax Ombudsman has been established to strengthen transparency and accountability within the tax system, enhance confidence in tax administration, and provide a structured mechanism for the fair and impartial resolution of disputes between taxpayers and revenue authorities,” the government said in a statement.
This move aligns Nigeria with countries such as Tanzania, South Africa, and the United States of America, which also have independent taxpayer protection bodies.
What the Ombud is supposed to do
Tax disputes in Nigeria have traditionally been settled by tribunals or the courts, which are slow, expensive, and inaccessible for most people. The Ombud is supposed to fix that. It was created as a more agile, less bureaucratic route for investigating tax-related complaints and protecting taxpayer rights.
It has the power to receive and investigate complaints against tax officials, authorities, and agencies, and resolve these disputes through mediation or conciliation.
It can recommend actions to revenue authorities, initiate legal proceedings on behalf of taxpayers at no cost, provide information on the functions of tax authorities, and raise awareness of taxpayer rights and obligations.
It can also issue guidelines, directives, or orders for complaint resolution and report questionable policies to the National Assembly. Essentially, it is a watchdog sitting between taxpayers and an increasingly powerful tax authority.
Tax Dispute Triage
Answer 3 questions to find the right place for your complaint.
What it cannot do
However, the same law enabling this new office also clips its wings. It cannot determine how much tax a person or business owes, issue assessments, or interpret tax laws except in relation to operational, procedural, or administrative questions. It cannot review or intervene in matters already before a tribunal or court.
“One would be left to wonder how the Tax Ombud would be able to conduct its investigation without juxtaposition of the facts of each complaint with its perceived interpretation of the relevant tax law,” AO2Law, a Lagos-based firm, said in a report.
“It therefore appears here that the creation of the office of Tax Ombud may be cosmetic and a paper tiger as the draftsmen have shown that the provisions of the Joint Revenue Board (Establishment) Bill, is a mere administrative formality that possesses no coercive power to compel any tax authority to perform an act even where the outcome of the investigation shows acts of arbitrariness on the part of a tax authority,” the law firm continues.
Taxpayers are not required to complain to the Ombud first and go straight to the tribunal.
“The implication of this is that a tax authority can disregard the office of a Tax Ombud and proceed with its perceived arbitrary actions against a taxpayer,” AO2Law added.
What does this mean?
The Office of the Tax Ombud was introduced to rebalance the power play between taxpayers and revenue authorities, especially as more Nigerians will be captured under the tax net. But the law gives it more discretion than authority. It can recommend but not enforce.
So, while Nigerians, especially freelancers and first-time taxpayers, now have an office that can quickly mediate, raise red flags, and push back against excesses, it still feels like a place to complain, not necessarily a place to win. Ultimately, freelancers may still need to go to courts for the many issues the Ombud cannot resolve.
