Tax Ombud, OGFZA to resolve investor disputes, boost foreign investment

Nigeria's Office of the Tax Ombud and the Oil and Gas Free Zones Authority (OGFZA) are joining forces to address tax and fee-related disputes, aiming to enhance the attractiveness of the country's oil and gas free zones to investors. This inter-agency collaboration seeks to establish an independent channel for resolving complaints concerning taxes, levies, regulatory fees, customs duties, and excise matters.

The initiative comes as the Federal Government strives to increase Nigeria's tax-to-GDP ratio while simultaneously attracting foreign direct investment and stimulating private sector activity. The proposed partnership was disclosed during a courtesy visit by Tax Ombud John Nwabueze to OGFZA. The collaboration is intended to provide effective and efficient mediation services through the Tax Ombud's office.

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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 incentives like tax exemptions and customs duty concessions to attract capital, foster infrastructure development, and create jobs. However, the presence of multiple taxes and ambiguities in incentive interpretations can create uncertainty for investors. The Tax Ombud's office will complement OGFZA's regulatory functions by offering an independent review of complaints related to taxes and fees.

Nwabueze stated that the collaboration would help create a fairer and more predictable business environment. By resolving taxpayer complaints and clarifying tax incentive applications, the agencies aim to improve transparency and accountability in tax administration, encouraging voluntary compliance. This effort aligns with the government's broader objective of balancing revenue generation with investment promotion.

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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.