Former Labour Party presidential candidate, Peter Obi, has criticised Nigeria’s tax laws, warning that prosperity cannot be achieved by placing heavier burdens on poor citizens.
Obi, who defected to the African Democratic Congress (ADC) on Wednesday, made his position known in a post on X on Friday, where he questioned the government’s approach to taxation and called for transparency, fairness, and people-centred 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 transformative leadership is rooted in honesty, adding that governments must be transparent and truthful in order to earn citizens’ trust.
‘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 current taxation framework falls short of these standards, stressing that taxation should operate as a genuine social contract between the government and the people.
‘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.
According to him, Nigerians are being asked to pay taxes without adequate explanation or visible benefits, a situation he said undermines economic growth and national unity.
Obi also emphasised the importance of empowering small and medium-sized enterprises, noting that economic 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 expand the tax base by creating jobs and increasing incomes.
The former Anambra State governor further expressed concern over what he described as an ongoing tax fraud controversy, alleging that the new tax law was manipulated.
‘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’, Obi wrote, warning that citizens were being asked to pay higher taxes under a framework lacking transparency and legitimacy.
He called for a fair, lawful, and people-centred tax system that supports enterprise, protects the vulnerable, and restores public trust.
