A Lot of Nigerians Don’t Trust the Tax System. Can the New Reforms Change That?

Lagos State reported a 92% increase in individual annual tax filings between 2025 and 2026, while corporate filings increased by 11%. At the same time, businesses and tax professionals have been raising questions about how the new tax regime is being implemented.

That creates a bigger question for Nigeria’s tax system: can the government get people to comply if they don’t have confidence in the system they are being asked to comply with?

This question has become more prominent in recent weeks.

At a Lagos Chamber of Commerce and Industry and Organised Private Sector forum, businesses called for clearer rules, simpler administration and more predictable tax treatment. A joint LCCI-PwC assessment also found concerns around administrative and coordination gaps, including how federal and state tax authorities interact.

For a business owner, uncertainty can have a practical cost.

If different authorities interpret provisions differently, if rules are unclear or if a business has to respond to repeated compliance requests, complying with the law can require more time and money. Stakeholders at the forum specifically called for better coordination between the Nigeria Revenue Service and state tax authorities, including greater use of joint audits.

Then there is the question of what taxpayers experience when something goes wrong.

Nigeria’s new Office of the Tax Ombud began full operations in January 2026. Its mandate includes receiving and investigating complaints against tax authorities, mediating disputes and making recommendations to revenue agencies. The office says its work is aimed at protecting taxpayer rights, building public trust and encouraging voluntary compliance.

Speaking at the Finance Correspondents Association of Nigeria conference in Lagos this week, Tax Ombud John Nwabueze made taxpayer confidence the focus of his presentation. He said taxpayers need to understand what they are being asked to pay, why they are paying it and what avenues are available when they believe they have been treated unfairly.

That changes the conversation around tax compliance.

People have a legal obligation to pay the taxes they owe. But a functioning tax system also needs clear rules, consistent administration and accessible ways for taxpayers to raise legitimate concerns.

The government is already putting more emphasis on digital administration and using data to identify non-compliance. LIRS, for example, says it has strengthened its digital platforms and data integration as part of its approach to taxpayer identification, risk-based interventions and service delivery.

Technology can make compliance easier, but it also raises the standard for administration. If taxpayers are expected to provide accurate information digitally, they should also be able to understand what is required of them, correct errors and get clear answers when there is a dispute.

The same applies to tax education.

The Tax Ombud has called for more reporting and education that explains how tax laws work in practice, rather than simply announcing new policies. That matters because a taxpayer who does not understand an obligation can easily mistake confusion for unfair treatment.

Nigeria’s tax reforms are still relatively new, and the government is currently reviewing implementation issues that have emerged since the laws took effect in January 2026. The next stage will show whether some of the concerns raised by businesses and taxpayers lead to clearer rules and better administration.

For taxpayers, the responsibility also remains straightforward: understand your obligations, keep proper records and ask questions when something is unclear.

LessaTax helps individuals, freelancers and businesses keep their income, expenses, invoices, receipts and other tax records organised, so they have clearer financial records when it is time to file, reconcile payments or respond to a tax issue.