BY VICTOR BUORO – Following Federal Government’s insistence on implementing the new tax laws from January 1, 2026, former Presidential candidate of Labour Party (LP) in the 2023 election, Peter Obi, says the taxation policy will further worsen the living conditions of citizens and deepen hardship across the country.
Consequently, he has warned that prosperity cannot be achieved by taxing poverty in a country where majority of citizens are indigence and facing extreme financial distress.
“There is no virtue in celebrating increased government revenue while the people grow poorer. Taxing poverty does not create wealth; it deepens hardship. Any tax system that makes citizens poorer violates the fundamental principles of good governance and sound fiscal policy”, Obi said.
The former Anambra State Governor, who stated this worries on his X handle Friday, said for taxation to function as genuine social contract, it must be rooted in sincerity and concern for the welfare of the people.
His statement read: “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.”
Maintaining that leaders with capacity to unite their people are guided by honesty and transparency, Obi said, “Transformative leaders, those who successfully unite their people around a shared vision, share a defining quality: honesty. Government must be transparent and truthful because citizens deserve nothing less from those who lead them.”
For him, leadership should be about service, not exploitation or personal gains, adding: “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.”
He said Nigeria’s taxation policy must be judged by the standard of leadership that not only enhances effectiveness, but also ensures taxation is rooted in fairness, sincerity and concern for the welfare of the people.
According to him, “It is against this standard of honest leadership that Nigeria’s current approach to taxation must be measured. 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.”
The Anambra-born politician, who recently dumped the Labour Party for the African Democratic Congress (ADC)-led coalition, said Nigeria must rethink its taxation system if it must achieve economic growth and national unity.
He said: “Nigeria must rethink taxation if it is serious about economic growth, national 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.”
Further lamenting that Nigerians are being asked to pay taxes without clarity or visible benefits, Obi said the solution lies in empowering businesses and creating more jobs in the country.
The statement said; “Yet today, Nigerians are asked to pay taxes without clarity, explanation, or visible benefit. The solution begins with empowering small and medium-sized enterprises in every community. 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.”
While also raising concerns over what he described as a tax fraud saga, and how the country is witnessing a period when laws were “forged”, for the first time in history, Obi said: “This makes the 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 has 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.”
Further submitting that taxing poverty does not create wealth but only deepens hardship, he cautioned against celebrating revenue growth at the expense of citizens, while stressing the need for lawful and people-centred tax system that boost production and restore trust between government and citizens.
For the ADC Chieftain, in the current situation, “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.”
