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The Federal Government of Nigeria has reaffirmed its commitment to building a fair, responsive, and revenue-efficient tax system by deepening the integration of Alternative Dispute Resolution (ADR) into the country’s tax administration processes. This strategic shift is aimed at fostering voluntary compliance, reducing litigation costs, and ultimately improving Nigeria’s domestic revenue performance in line with broader economic reforms.
Speaking at the TaxADR Roundtable in Abuja, themed “Unlocking Revenue and Strengthening Dispute Resolution: A Roadmap to Tax ADR in Nigeria,” Minister of State for Finance, Dr Doris Uzoka-Anite, emphasised the importance of tax collaboration over confrontation. Represented by Mrs Ndidi Chineyolum, a director in the ministry, she underscored the government’s determination to align tax policy with principles of trust, fairness, and efficiency.
“Resolving tax disputes collaboratively reflects the core values of a modern tax system. We must transition from adversarial enforcement to consensus-driven dispute resolution to strengthen confidence in our tax institutions,” she said.
The minister highlighted that Nigeria’s evolving economic landscape—characterised by diversification efforts, demographic growth, and global shifts away from commodity dependence—requires a robust and equitable domestic revenue framework. With tax compliance challenges persisting, she warned that protracted litigation undermines fiscal planning, discourages investment, and stifles development outcomes.
“New business models and regulatory complexity are driving the volume and diversity of tax disputes. Litigation not only prolongs resolution but also delays revenue remittance and creates economic uncertainty,” she added.
ADR as a Tool for National Development
Delivering a goodwill message at the forum, the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (represented by Oloyede Hussein, Special Adviser to the President on Arbitration, Drafting, and Resolution), advocated for a non-coercive, transparent, and inclusive tax system.
“ADR provides a practical avenue for improving taxpayer confidence and preserving public-private relationships,” Fagbemi stated. “By integrating mediation and arbitration into tax administration, we can reduce enforcement friction, lower compliance costs, and enhance efficiency.”
Fagbemi encouraged taxpayers to engage constructively with tax authorities, describing ADR as a vehicle for institutional trust and a catalyst for a sustainable tax culture grounded in accountability and fairness.
Institutional Reforms and Digital Transformation
Founder and Convener of the TaxADR Roundtable, Mr Lateef Yusuff, noted that recent policy and legal reforms, including the Arbitration and Mediation Act and the National ADR Policy, have laid the foundation for a comprehensive dispute resolution architecture within the tax ecosystem.
“This roundtable serves as a platform to accelerate the operationalisation of ADR in Nigeria’s tax administration, leveraging recent statutory and institutional advancements,” Yusuff said.
In her keynote address, Coordinating Secretary of the Tax Appeal Tribunal (TAT), Anita Erinne, reaffirmed the Tribunal’s commitment to enhancing access to justice and promoting certainty in tax adjudication.
“Tax disputes directly affect government revenue, business outcomes, and public trust. A collaborative and efficient resolution mechanism is essential to ensuring predictability, legal certainty, and inclusive economic growth,” Erinne stated.
She commended the Federal Inland Revenue Service (FIRS), under the leadership of Executive Chairman Dr Zacch Adedeji, for championing reforms aimed at institutionalising ADR within tax processes. Erinne also highlighted the critical role of digital transformation in improving taxpayer engagement and compliance outcomes.
According to her, Nigeria’s tax-to-GDP ratio, currently at approximately 13%, underscores the urgency of reforms that combine strong enforcement with transparency, public accountability, and taxpayer-centric service delivery.
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