Tax Ombudsman Inaugurated To Protect Businesses From Harassment—Oyedele

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, has said that the Federal Government’s new tax regime will favour compliant and formalised enterprises while protecting small and informal businesses from undue pressure and harassment by tax officials.

Speaking at the 24th Annual Conference of the Women in Management, Business and Public Service (WIMBIZ) held in Lagos, Oyedele said the ongoing reforms are people-centred and designed to reward compliance, promote fairness, and support economic growth rather than overburden citizens or businesses.

During a panel session themed “The New Tax Law and You,” Oyedele urged entrepreneurs, especially small business owners, to formalise their operations to benefit from a range of incentives embedded in the new tax framework taking effect from January 2026.

“We started the tax and fiscal reform by looking at how people do business, how those businesses grow, and how finance is placed,” he explained. “You can’t knock on the door and say, ‘Tax me.’ Let’s have a conversation on how to create a business that can pay corporate tax. So, the reforms are people-centric.”

According to Oyedele, small companies with an annual turnover of ₦100m or less will enjoy a zero per cent corporate tax rate, in line with the government’s goal of allowing small businesses to expand before being taxed.

“If you run a small company where your annual turnover is ₦100m or less, your corporate tax rate will be zero per cent. What is even more interesting is that the Corporate Affairs Commission (CAC) will register 250,000 small companies free of charge,” he disclosed.

He also revealed that the reforms would ensure fairness in value-added tax (VAT) administration, adding that critical sectors such as food, water, education, pharmaceuticals, and medical services will be fully exempted from VAT from next year.

“From next year, January 1, this bottle of water will be zero-rated for VAT. The same explanation applies to food, education, pharmaceutical, and medical services,” he said.

Oyedele explained that the government’s decision to exempt essential goods and services from VAT was informed by data showing that low-income Nigerian households spend nearly 80 per cent of their income on food, health, rent, education, and transportation.

“If people spend their entire income on five basic items, food, education, health, rent, and transport, then we must remove the taxes on those,” he noted.

To further protect taxpayers and ensure fair treatment, Oyedele announced the creation of a new Office of the Tax Ombudsman, which will serve as an independent body to mediate disputes and safeguard the rights of taxpayers.

“If anybody shows up to harass you, to collect tax, or to seal up your premises, you can call the Tax Ombudsman. They have the legal authority and obligation to protect your rights,” he stated.

He urged professional associations and advocacy groups, including WIMBIZ, to train and nominate representatives who could serve as liaisons between businesses and the Ombudsman to ensure prompt resolution of tax-related complaints.

Oyedele further disclosed that the reforms would protect informal workers and micro-enterprises through visible tax exemption stickers, ensuring they are not unfairly targeted by revenue officers.

“If somebody is roasting corn, a vulcaniser, or a carpenter — those people are poor. We’re planning to give them exemption stickers so they can live their lives without harassment. That’s how direct and practical it is,” he said.

Throughout his remarks, Oyedele reiterated that the reform drive aims to stop taxing poverty and investment, focusing instead on creating an enabling environment for growth.

“We have to stop taxing poverty. We have to stop taxing capital. We have to stop taxing investment. That’s why Mr President said we will no longer tax seed; we’ll wait, invest with you, and tax the fruits,” he declared.