Nigeria Tax Ombud Says Multiple Levies Still Hurting Businesses

Nigeria’s Tax Ombud says multiple taxes, levies and charges are still hurting businesses, even after the country’s 2025 tax overhaul was designed to end more than 50 overlapping taxes and create a dispute-resolution office.

Nigeria’s Tax Ombud has warned that overlapping taxes, levies, fees and charges continue to raise costs and complexity for businesses, despite a sweeping reform signed into law in June 2025. The complaint lands as the federal government tries to attract capital and move the economy beyond oil dependence.

A reform designed to end more than 50 overlapping taxes

Dr John Nwabueze, Chief Executive of Nigeria’s Office of the Tax Ombud, said the problem persists even after the country’s new tax framework came into view. Nigeria signed four tax reform laws on 26 June 2025: the Nigeria Tax Act, the Tax Administration Act, the Nigeria Revenue Service Act, and the Joint Revenue Board Act.

The package was set to take effect from 1 January 2026. It included a Tax Ombudsman to resolve disputes over taxes, levies and regulatory charges, and it aimed to simplify collection across federal, state and local tiers.

Yet the ombud’s office says businesses still face a patchwork of demands. The reform was meant to remove more than 50 overlapping taxes, but the lived experience of firms suggests the cleanup is incomplete.

What the Central Bank data shows

The Central Bank of Nigeria’s Business Expectations Survey has repeatedly flagged high or multiple taxes as a leading business problem. In April 2025, 74.5 percent of respondents cited it as a major constraint.

By November 2025, the figure was 70.8 percent. That is a slight improvement, but it still means more than seven in ten businesses named multiple taxation as a top concern.

The survey data gives the ombud’s warning a hard empirical edge. It is not only manufacturers complaining; the pressure shows up across the broader business community.

The levies firms say they still face

Manufacturers’ groups say companies continue to receive demands for environmental levies, permits, sanitation charges and signage fees. They also list waste disposal charges, market fees, loading permits and fire-service levies.

These charges often arrive from state and local authorities, not just the federal government. Each one may be small on its own, but together they raise the cost of doing business and create administrative friction.

The pattern points to a deeper problem: informal rent-seeking at subnational levels. Even when federal rules change, local officials can keep imposing their own charges unless enforcement is consistent.

A fiscal push with geopolitical weight

The tax debate sits inside a federal fiscal push to lift revenue and simplify collection. Abuja wants to reduce the informal charges that eat into business margins and discourage investment.

There is also a wider competition for capital. Nigeria is trying to improve its business climate as outside investors compare it with other African markets, and as it seeks growth beyond oil dependence.

That is where the story connects to the broader scramble for African opportunity. Investors weighing frontier markets look closely at whether a country’s rules are predictable, and multiple taxation works against that.

Who gains and who loses

The clearest losers are small and mid-sized firms that lack the compliance teams to handle many different levies. Larger manufacturers can absorb some of the cost, but they still face delays and uncertainty.

The federal government gains if it can centralise collection and show investors a cleaner system. State and local officials who rely on informal charges may resist losing that revenue stream.

The ombud’s role is to resolve disputes, but its effectiveness depends on whether businesses trust the process. If the office can deliver quick rulings, it may become a pressure valve for frustrated firms.

What to watch next

The key test is whether the 1 January 2026 start date brings real enforcement, or whether old practices continue under new labels. Business groups will be watching whether the Tax Ombudsman can actually stop duplicate demands.

For investors, the signal to watch is the next Central Bank Business Expectations Survey. If the multiple-taxation figure keeps falling, the reform is working; if it stays near 70 percent, the cleanup has stalled.

The wider lesson for frontier markets is familiar. Laws matter, but enforcement and local practice decide whether a reform changes daily life for businesses. Nigeria’s tax experiment is now in that critical phase, and the ombud’s warning suggests the hardest work is still ahead.

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