Former Labour Party presidential candidate, Peter Obi, has criticised Nigeria’s tax laws, cautioning that national prosperity cannot be achieved by imposing heavier burdens on poor citizens.
Obi, who defected to the African Democratic Congress (ADC) on Wednesday, made his views known in a post on X on Friday, where he questioned the government’s taxation strategy and called for transparency, fairness, and people-focused fiscal policies.
“Prosperity cannot come by taxing poverty. As I travel the world and meet leaders who have transformed their nations, one lesson is clear: lasting economic and social progress begins with national consensus,” Obi wrote.
He argued that genuine transformation is anchored on honesty, stressing that governments must be transparent and truthful to earn the trust of the people.
“Government must be transparent and truthful because citizens deserve nothing less from those who lead them. True leaders do not exploit their people to enrich themselves and a few cronies; they build trust, unity, and shared purpose, the foundation of sustainable progress,” he said.
Obi maintained that Nigeria’s existing tax framework does not meet these ideals, noting that taxation should function as a sincere social contract between the state and its citizens.
“If taxation is to function as a genuine social contract, it must be rooted in sincerity, fairness, and concern for the welfare of the people. Every tax policy should be clearly explained, including its impact on incomes and its expected contribution to national development,” he stated.
He said Nigerians were being asked to pay taxes without clear explanations or visible benefits, a situation he warned could weaken economic growth and national cohesion.
The former Anambra State governor also emphasised the need to empower small and medium-sized enterprises, noting that sustainable growth is driven by production rather than excessive taxation.
“You cannot tax your way out of poverty, you must produce your way out of it,” he said, adding that thriving small businesses would naturally widen the tax base through job creation and higher incomes.
Obi further raised concerns over what he described as an ongoing tax fraud controversy, alleging irregularities in the new tax law.
“For the first time in Nigeria’s history, a tax law has reportedly been forged. The National Assembly itself has admitted that the version gazetted is not what was passed into law,” he wrote, warning that citizens were being compelled to pay higher taxes under a framework lacking transparency and legitimacy.
He called for a lawful, fair, and people-centred tax system that encourages enterprise, protects the vulnerable, and restores public confidence.
Meanwhile, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has dismissed concerns that the new tax laws would result in automatic debits from personal bank accounts.
Oyedele said individuals would not be required to provide narrations for bank transfers, describing the reforms as straightforward and transparent.
Earlier in the week, President Bola Tinubu reaffirmed that the implementation of the new tax laws would continue as scheduled despite criticism from opposition figures, labour unions, and other stakeholders.
In a statement, the President said the reforms were not designed to increase taxes but to support a structural reset, promote harmonisation, protect citizens’ dignity, and strengthen the social contract.
“The new tax laws, including those that took effect on June 26, 2025, and the remaining acts scheduled to commence on January 1, 2026, will continue as planned,” Tinubu said.
He described the reforms as “a once-in-a-generation opportunity to build a fair, competitive, and robust fiscal foundation for our country” and urged Nigerians to support their implementation.