By Nchetachi Chukwuajah
Former presidential candidate, Peter Obi, has again urged the Federal Government to suspend the implementation of the newly-gazetted tax laws, saying that “a tax system devoid of clear public benefits isn’t reform; it is quite frankly, extortion.”
In a statement posted on his X (formerly Twitter) and Facebook accounts on Tuesday, January 13, Obi cited errors, inconsistencies and gaps that could affect businesses and taxpayers.
He referred to a report by KPMG Nigeria, which flagged potential issues including the taxation of shares, dividend treatment, non-resident obligations and foreign exchange deductions.
The former Anambra State governor also noted that the KMPG Nigeria report highlighted “31 critical problem areas, from drafting errors to glaring policy contradictions and administrative gaps.”
He added that the issues were so complex that “it took private meetings between the National Revenue Service and KPMG for these serious issues to be acknowledged.
He said: “If experts require closed-door discussions to navigate the complexities of our tax laws, what hope does the average Nigerian have of comprehending the obligations being imposed on them?”
Obi argued that taxation represents a social contract between the government and citizens, and stressed the lack of public consultation.
“In Nigeria, the narrative is all about how much more the government seeks to extract, rather than what it is prepared to offer in return. A tax system devoid of clear public benefits isn’t reform; it is, quite frankly, extortion.
“Typically, months, if not years, are dedicated to consulting with businesses, workers, and civil society before tax drafts are presented for public discussion, with the ramifications clearly explained.
“Yet, in Nigeria, we have seen no such public consultations or discussions regarding the final tax laws, leaving ordinary citizens completely in the dark about both the regulations and the benefits of the taxes they’re expected to pay.”
He further faulted the government’s approach, saying it hastily pursued collection instead of ensuring consensus and providing an explanation.
“We have hastily pursued collection without securing a consensus and imposed enforcement without providing adequate explanations.
“Even after the removal of subsidies, Nigerians remain in limbo, waiting for tangible benefits or relief. Instead, they are grappling with skyrocketing food prices, exorbitant transport costs, dwindling purchasing power, and escalating poverty levels.
“Before we have even begun to address these issues, we are being thrust into an expansive new tax regime riddled with inconsistencies and producing 31 alarming red flags from a leading global accounting firm. This is not the hallmark of responsible governance. Without trust, taxation feels like punishment. Without clarity, it breeds confusion. Without evident public value, it amounts to robbery.”
