Former Labour Party presidential candidate, Mr Peter Obi, has criticised Nigeria’s current taxation approach, warning that prosperity cannot be achieved by placing heavier burdens on already impoverished citizens.
In a statement, Obi, who has now joined the African Democratic Congress (ADC), said his interactions with global leaders who have transformed their countries reveal that lasting economic and social progress is anchored on national consensus, honesty, and transparent leadership.
According to him, transformative leaders are those who unite their people around a shared vision built on trust, fairness, and sincerity.
“Government must be transparent and truthful because citizens deserve nothing less from those who lead them,” Obi said, stressing that true leadership does not exploit the people to enrich a few but focuses on building unity and shared purpose as the foundation for sustainable development.
He argued that Nigeria’s taxation system must be assessed against this benchmark of honest leadership, noting that taxation should operate as a genuine social contract between government and citizens.
Obi maintained that tax policies must be clearly explained, including their impact on incomes and how the proceeds will contribute to national development.
“Without transparency, taxation becomes a tool of confusion and burden rather than a mechanism for growth,” he said.
Obi called on the Federal Government to rethink its taxation strategy if it is serious about economic growth, national unity, and shared prosperity. He noted that the goal of sound fiscal policy should not merely be revenue generation but improving citizens’ welfare so that the nation as a whole becomes stronger.
He lamented that Nigerians are currently being asked to pay higher taxes without clarity, explanation, or visible benefits, insisting that empowering small and medium-sized enterprises (SMEs) is the most effective way to expand the tax base organically.
“When small businesses thrive, jobs are created, incomes rise, and the tax base expands naturally. You cannot tax your way out of poverty; you must produce your way out of it,” Obi said.
The former Anambra State governor also expressed concern over what he described as an ongoing tax fraud saga, describing it as unprecedented in Nigeria’s history.
He claimed that a tax law was allegedly forged, with the National Assembly reportedly admitting that the version gazetted was not what was passed into law.
Despite this, Obi noted, citizens are being asked to pay higher taxes under what he called a manipulated framework, without transparency, explanation, or corresponding benefits.
“There is no virtue in celebrating increased government revenue while the people grow poorer. Taxing poverty does not create wealth; it deepens hardship,” he warned.
Obi 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, insisting that only such an approach can make taxation a true tool for unity, growth, and shared prosperity.
