Former presidential candidate and ex-Governor of Anambra State, Mr. Peter Obi, has strongly criticised the Federal Government’s taxation policies, warning that Nigeria cannot achieve prosperity by placing heavier financial burdens on already struggling citizens.
In a statement shared on his X handle, Obi argued that genuine economic transformation begins with honest leadership and national consensus, stressing that transparency and trust are essential ingredients for sustainable development.
“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 added that transformative leadership is anchored on integrity, noting that “Transformative leaders—those who successfully unite their people around a shared vision—share a defining quality: honesty.”
According to him, government owes citizens transparency and truthfulness, insisting that leadership should never be used as a tool for personal enrichment.
“Government must be transparent and truthful because citizens deserve nothing less from those who lead them,” Obi stated. “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.”
Measuring Nigeria’s current taxation approach against this standard, Obi said the system falls short of what a genuine social contract should represent. He argued that taxation must be fair, clearly explained, and focused on improving the welfare of 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,” he said. “Every tax policy should be clearly explained, including its impact on incomes and its expected contribution to national development.”
Obi warned that without openness and clarity, taxation risks becoming an instrument of hardship rather than growth. He maintained that Nigeria must urgently rethink its tax policies if it is serious about economic expansion, unity, and shared prosperity.
“The purpose of sound fiscal policy is not merely to raise revenue; it is to make the people wealthier so that the nation itself becomes stronger,” he noted, lamenting that Nigerians are being asked to pay more taxes “without clarity, explanation, or visible benefit.”
The former governor identified the empowerment of small and medium-sized enterprises (SMEs) as the most sustainable path to expanding the tax base, insisting that production—not taxation—should drive economic recovery.
“The solution begins with empowering small and medium-sized enterprises in every community,” Obi said. “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.”
He also expressed concern over what he described as an unprecedented tax fraud controversy, alleging that a forged tax law is currently being enforced on Nigerians.
“This makes the ongoing tax fraud saga particularly alarming,” Obi stated. “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.”
According to him, citizens are now being compelled to pay higher taxes under a framework that lacks transparency and legitimacy.
“There is no virtue in celebrating increased government revenue while the people grow poorer,” Obi warned. “Taxing poverty does not create wealth; it deepens hardship.”
He concluded by calling for a people-centred tax system that promotes production, protects vulnerable citizens, and rebuilds trust between the government and the governed.
“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,” Obi said, adding that only such an approach can make taxation a true driver of unity and shared prosperity.