The federal government has stated that Nigeria’s evolving tax system is being designed to address the challenges faced by taxpayers while enhancing domestic revenue generation, particularly in light of the country’s ongoing economic reforms and diversification efforts.

Minister of State for Finance, Dr. Doris Uzoka-Anite, made this known in Abuja at the TaxADR Roundtable themed “Unlocking Revenue and Strengthening Dispute Resolution: A Roadmap to Tax ADR in Nigeria.” She was represented by Mrs. Ndidi Chineyolum, a director in the Ministry of Finance.

She noted that the country is building a more responsive tax administration framework that not only ensures efficient revenue mobilisation but also prioritises fairness, taxpayer engagement, and efficient resolution of disputes.

According to Uzoka-Anite, “We live in a time when economic reform, inclusive growth and sustainable public finances demand innovative approaches. Resolving tax disputes collaboratively reflects the core principles needed for a modern tax system, including mutual trust, fairness in enforcement and efficiency in resolving issues.”

She said the theme of the roundtable encouraged a shift from adversarial tax enforcement to fostering consensus-driven approaches. “We must reduce adversarial interactions and create a system where disputes are resolved through timely dialogue, not prolonged confrontation,” she said.

As Nigeria seeks to broaden its non-oil revenue base, the minister noted that tax compliance has become increasingly important but remains a challenge. She added that global shifts away from commodity dependence require Nigeria to strengthen domestic revenue capacity for national development.

“The rise in complex tax disputes, in terms of volume and diversity, is driven by new business models and regulatory frameworks,” Uzoka-Anite explained. “Traditional litigation is not only costly and time-consuming, but it also delays revenue collection and creates an atmosphere of uncertainty between taxpayers and authorities.”

She warned that prolonged disputes could erode investor confidence and hinder the predictability required for stable fiscal planning.

Also speaking at the event, 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), said the government must expand its revenue base through taxation without resorting to coercive measures.

He maintained that Alternative Dispute Resolution (ADR) offers a practical pathway for building public trust and improving compliance. “ADR has long been recognised globally for preserving relationships, reducing costs and resolving issues efficiently. These are the values we must incorporate into Nigeria’s tax system,” he said.

Fagbemi called on taxpayers to embrace dialogue when disputes arise and stressed the importance of building a tax culture grounded in accountability and fairness.

Founder and Convener of the TaxADR Roundtable, Mr Lateef Yusuff, said the forum was convened to explore how ADR mechanisms can be better integrated into Nigeria’s tax environment.

He noted that the roundtable was particularly relevant in light of recent legal and policy milestones, including reforms to Nigeria’s tax laws, the enactment of the Arbitration and Mediation Act, and the adoption of a National ADR Policy.

“These developments provide a strong framework for embedding ADR in Nigeria’s tax system,” Yusuff said.

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In her keynote address, Anita Erinne, Coordinating Secretary of the Tax Appeal Tribunal, affirmed the tribunal’s commitment to improving access to justice in tax disputes. She said the tribunal’s mission is aligned with the broader national objective of ensuring that tax administration contributes to legal certainty, economic stability, and national growth.

“Tax disputes affect government revenue, business fortunes, and citizens’ livelihoods. A collaborative approach to tax administration can make a significant impact on the rule of law and investor confidence,” she stated.

Erinne also commended the Federal Inland Revenue Service (FIRS) under the leadership of Executive Chairman Dr Zacch Adedeji for backing reforms that support ADR implementation in tax processes.

She acknowledged the role of digital transformation in Nigeria’s tax administration, adding that the country’s current tax-to-GDP ratio stands at approximately 13 per cent. “A modern tax system combines effective enforcement with collaborative governance and public accountability,” she concluded.