Former Labour Party presidential candidate, Peter Obi, has criticised Nigeria’s current tax policies, warning that prosperity cannot be achieved by placing heavier burdens on the poor.
In a statement shared on his X handle on Friday, Obi said “prosperity cannot come by taxing poverty,” adding that countries that have achieved lasting economic and social development did so through honest leadership, national consensus and people-focused policies.
Obi said, “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.
“Without this transparency, taxation becomes a tool of confusion and burden rather than a mechanism for growth and development.”
He argued that Nigeria must rethink its approach to taxation if it is serious about economic growth, national unity and shared prosperity, adding that the purpose of fiscal policy should be to make citizens wealthier rather than merely increasing government revenue.
The former Anambra State governor stressed that empowering small and medium-sized enterprises remained the key to sustainable growth, noting that 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 added.
He warned that celebrating increased government revenue while citizens grow poorer undermines good governance, insisting that any tax system that worsens poverty violates basic principles of sound fiscal management.
“Nigeria needs a fair, lawful, and people-centred tax system—one that supports production, rewards enterprise, protects the vulnerable, and restores trust between government and citizens. Only then can taxation become a true tool for unity, growth, and shared prosperity,” he concluded.
Obi’s comments come amid public debate over Nigeria’s new tax reform laws, which were implemented from January 1, 2026.
Opposition lawmakers and civil society groups raised concerns over discrepancies between the versions of the tax bills passed by the National Assembly and the versions later gazetted by the Federal Government, leading to questions about their authenticity and constitutional validity.
The National Assembly leadership has directed the release of the certified true copies of the tax bills signed into law to enable public scrutiny. Lawmakers said some controversial provisions in the gazetted copies appeared not to reflect what was passed on the floor, prompting institutional steps to address the concerns.
The President Bola Tinubu administration has maintained that the tax laws will be implemented as planned and has rejected calls to delay their commencement.
He said the laws are intended to support structural reset, harmonization and growth.
The Federal Government has maintained that the tax reforms are not intended to saddle low-income Nigerians with heavier burdens.
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