The Federal Government’s push to raise Nigeria’s tax-to-GDP ratio has shifted attention to an area where taxation and investment incentives often collide, as the Office of the Tax Ombud and the Oil and Gas Free Zones Authority move to address tax and fee-related disputes that could discourage investors.

🇳🇬 Here's What Happened

The two agencies have resolved to explore inter-agency collaboration aimed at making Nigeria’s oil and gas free zones more attractive to foreign and local investors by providing an independent channel for resolving complaints over taxes, levies, regulatory fees, customs duties and excise matters.

The proposed partnership was disclosed during a courtesy visit by the Tax Ombud and Chief Executive, Dr John Nwabueze, to the OGFZA on Wednesday, according to a statement issued on Thursday by the Chief Press Secretary to the Tax Ombud, Chukwudi Achife.

The move comes as the Federal Government seeks to expand tax revenue without undermining its broader drive to attract foreign direct investment and stimulate private-sector activity.

📌 Key Details

The statement partly read, “As part of efforts to increase Nigeria’s tax-to-GDP ratio, the Office of the Tax Ombud and the Oil and Gas Free Zones Authority have resolved to explore inter-agency collaboration aimed at attracting more foreign direct investment into the country’s oil and gas free zones by addressing tax and fee-related grievances through effective and efficient mediation services provided by the country’s foremost tax dispute-resolution institution.”

Nigeria’s oil and gas free zones were established to offer investors incentives, including tax exemptions and customs duty concessions, in order to attract capital, support infrastructure development and create jobs.

However, the existence of multiple taxes, levies, regulatory charges and disputes over the interpretation of incentives can create uncertainty for businesses, particularly investors making long-term commitments in capital-intensive sectors.

Nwabueze said the proposed collaboration would help create a fairer and more predictable environment for businesses operating within the zones.

“I am very much aware that OGFZA regulates and coordinates activities in the zones, grants permits and licences, administers incentives, and resolves disputes among stakeholders. The Office of the Tax Ombud complements these functions by providing an independent channel for reviewing and resolving complaints relating to taxes, levies, regulatory fees, customs duties and excise matters,” he said.

He explained that the two agencies could work together to resolve taxpayer complaints, clarify the application of tax incentives and identify recurring or systemic grievances affecting investors.

📰 Source: Punch Nigeria