By Nchetachi Chukwuajah
Peter Obi, the Labour Party’s presidential candidate in the 2023 election, has criticised Nigeria’s current tax policies, saying that the country cannot achieve prosperity by taxing the poor.
Obi stated this in a statement shared on his official X handle on Friday, January 2, and comes a day after the Federal Government began implementing the new tax Acts.
He claimed that countries that have achieved lasting economic and social development did so through honest leadership, national consensus, and people-focused policies.
The former Anambra State governor stressed that true leaders do not exploit their people to enrich themselves and a few cronies, but rather build trust, unity, and shared purpose, which he said are the foundation of sustainable progress.
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.
“Yet today, Nigerians are asked to pay taxes without clarity, explanation, or visible benefit,” he added.
Obi further noted 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.
He said, “You cannot tax your way out of poverty — you must produce your way out of it.”
Obi also reacted to the recent alleged alterations in the new tax laws, with opposition lawmakers and civil society groups raising 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.
He said, “This makes this ongoing tax fraud saga particularly alarming. For the first time in Nigeria’s history, a tax law has reportedly been forged. The National Assembly itself admitted that the version gazetted is not what was passed into law. Yet citizens are being asked to pay higher taxes under this manipulated framework – without transparency, without explanation, and without corresponding benefits.”
The former presidential candidate 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.
