Tax Ombud, OGFZA to resolve investor disputes, boost foreign investment
August 20, 2026 10:29 pm
John Nwabueze. Photo credit: Techeconomy
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.
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.
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.
According to him, resolving such disputes efficiently could improve transparency and accountability in tax administration while encouraging businesses to comply voluntarily with their tax obligations.
Nwabueze said the proposed partnership was also connected to the government’s objective of improving Nigeria’s tax-to-GDP ratio, a key measure of how much tax revenue the country generates relative to the size of its economy.
“The areas of collaboration could include taxpayer complaint resolution, clarification of tax incentives, review of systemic complaints, and the promotion of transparency and accountability. These efforts would contribute to increased voluntary tax compliance and a higher tax-to-GDP ratio, which is critical to national development and consistent with the Renewed Hope Agenda of President Bola Ahmed Tinubu”, he said.
The initiative highlights a delicate balance facing the government: increasing public revenue while preserving incentives designed to draw investors into strategic sectors.
Responding, the Managing Director and Chief Executive Officer of OGFZA, Alhaji Usman Bamanga Jada, said investors in the country’s oil and gas free zones had benefited from incentives deliberately introduced by the Federal Government to support sustained inflows of foreign direct investment.
He said the incentives, tax exemptions and customs duty concessions were intended to make the zones competitive and encourage private-sector-led infrastructure development and employment generation.
Jada said collaboration with the Office of the Tax Ombud had become necessary as the Authority seeks to deepen economic activities within existing and proposed special economic zones.
According to him, a more efficient mechanism for resolving complaints could strengthen investor confidence by giving businesses an avenue to challenge or seek clarification on tax and regulatory demands.
The partnership could therefore serve as a bridge between the government’s revenue mobilisation drive and its investment promotion agenda, particularly in an industry where investors require certainty over the incentives available to them before committing large sums to projects.
Both agencies have appointed liaison officers to coordinate the proposed relationship and translate the discussions into concrete actions.
The liaison officers are expected to facilitate communication between the institutions and ensure that complaints and systemic issues identified by investors and operators receive prompt attention.
The development also comes as the Federal Government pursues broader tax reforms aimed at improving revenue generation, expanding compliance and simplifying tax administration. For operators in the oil and gas free zones, the success of the partnership may ultimately depend on whether it can deliver what investors value most.
While incentives may attract businesses, clear rules and a credible mechanism for resolving disputes could determine whether investors remain, expand their operations or take their capital elsewhere.
The Office of the Tax Ombud and OGFZA will now be expected to convert their proposed collaboration into practical mechanisms that protect legitimate government revenue while ensuring that tax and regulatory disputes do not erode the investment incentives that Nigeria’s oil and gas free zones were created to provide.
Damilola Aina is a journalist at Punch Newspapers with over five years of experience covering energy, business, investment, infrastructure, and property sectors. He specializes in producing well-researched and insightful reports that inform readers and provide clarity on complex topics. Damilola’s work demonstrates practical newsroom experience, editorial insight, and a strong commitment to accurate and engaging journalism.
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