Reported By Mary Udezue | Edited by: Gabriel Osa
Former Anambra State governor and 2023 presidential candidate, Peter Obi, has sharply criticised Nigeria’s current tax approach, warning that prosperity cannot be achieved by placing heavier fiscal burdens on an already impoverished population. In a strongly worded public statement shared on his verified X (formerly Twitter) account, Obi argued that Nigeria risks deepening inequality and social distrust if taxation continues without transparency, fairness, and visible public benefit.
Obi’s intervention comes amid rising public anxiety over new and proposed tax measures introduced by the federal government as it seeks to shore up revenues in the face of mounting debt obligations, subsidy removals, and fiscal deficits. While authorities have defended the measures as necessary to stabilise the economy, critics have warned that poorly designed tax policies could worsen living conditions for millions of Nigerians struggling with inflation, unemployment, and declining purchasing power.
In his statement, Obi stressed that genuine economic and social transformation begins with national consensus and honest leadership. Drawing on his engagements with leaders across the world, he argued that countries which have successfully transformed their economies did so by uniting their citizens around shared goals rooted in trust and transparency. According to him, honesty is the defining quality of transformative leadership, and governments must be truthful and accountable because citizens deserve nothing less from those who lead them.
The former Labour Party flagbearer contended that taxation should function as a social contract between the government and the people, not as an instrument of confusion or oppression. He maintained that for taxes to be legitimate and effective, policies must be clearly explained, including their impact on incomes and how the proceeds will contribute to national development. Without such clarity, he warned, taxation becomes a burden rather than a mechanism for growth.
Obi’s comments directly challenge the prevailing fiscal strategy of increasing tax rates and broadening the tax net in an economy where a significant proportion of the population lives below the poverty line. He argued that raising government revenue while citizens grow poorer offers no virtue and contradicts the basic principles of sound fiscal policy. In his view, any tax system that leaves people worse off violates the core ideals of good governance.
Central to Obi’s argument is the belief that Nigeria cannot tax its way out of poverty but must instead produce its way out. He emphasised that sustainable revenue growth comes from empowering small and medium-sized enterprises, which he described as the backbone of any productive economy. According to him, when small businesses thrive, jobs are created, incomes rise, and the tax base expands naturally without imposing punitive measures on struggling households.
The former governor also expressed concern over what he described as an alarming controversy surrounding Nigeria’s tax laws. He referenced reports suggesting that a tax law had been forged, with claims that the version gazetted was not the one passed by the National Assembly. Obi described the situation as unprecedented in Nigeria’s history and deeply troubling, particularly as citizens are being asked to pay higher taxes under a framework allegedly lacking legal and procedural integrity. He argued that such a development erodes public trust and undermines the legitimacy of fiscal policy.
His remarks have resonated widely across social media and political circles, with supporters praising his emphasis on people-centred governance and critics questioning the feasibility of his proposals in a country facing severe fiscal constraints. Economic analysts note that Nigeria’s tax-to-GDP ratio remains among the lowest globally, a factor often cited by policymakers to justify aggressive revenue mobilisation. However, many experts also agree that weak institutions, corruption, and inefficient public spending have historically limited the positive impact of increased revenue on citizens’ welfare.
Obi’s intervention highlights a broader national debate about the balance between revenue generation and social protection. With inflation remaining high and wages largely stagnant, labour unions and civil society organisations have repeatedly warned that additional taxes could push more Nigerians into poverty. Calls have intensified for the government to first demonstrate fiscal discipline, reduce the cost of governance, and plug revenue leakages before introducing new tax burdens.
The former presidential candidate concluded by calling for a fair, lawful, and people-centred tax system that supports production, rewards enterprise, protects the vulnerable, and restores trust between government and citizens. Only under such conditions, he argued, can taxation become a true tool for unity, growth, and shared prosperity rather than a symbol of hardship and inequality.
As Nigeria continues to grapple with economic reform and fiscal sustainability, Obi’s comments add to mounting pressure on policymakers to rethink the structure, communication, and implementation of tax policies. Whether the government will adjust its approach in response to growing public concern remains to be seen, but the debate underscores a critical question facing the nation: how to raise revenue without deepening poverty in one of Africa’s most populous countries.
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