Former Labour Party presidential candidate, Peter Obi, has sharply criticised Nigeria’s current taxation approach, warning that policies which burden citizens without delivering clear benefits undermine economic growth and national prosperity.
He insisted that a fair tax system must empower citizens rather than impoverish them, stressing that excessive taxation on the poor cannot generate lasting development.
Obi, in a statement shared on his verified X page on Friday, January 2, 2026, emphasised that effective leadership and sustainable progress are built on honesty, transparency, and national consensus.
Drawing lessons from leaders around the world, he said governments must act with sincerity and clarity, especially when designing policies that affect citizens’ livelihoods.
According to Obi, Nigeria’s fiscal framework falls short of these principles. He argued that taxation should operate as a genuine social contract, clearly explaining its impact on incomes and its contribution to national development.
“Any tax regime that is not transparent becomes a burden rather than a tool for growth,” he said.
He further stressed that the ultimate goal of fiscal policy should be wealth creation, not merely revenue generation.
Obi highlighted the role of small and medium-sized enterprises (SMEs) as engines for economic empowerment, noting that thriving businesses create jobs, increase incomes, and expand the tax base naturally.
“You cannot tax your way out of poverty; you must produce your way out of it,” he added.
The former Anambra State governor also expressed concern over a recent tax law controversy, alleging that a version being enforced by the government differs from what the National Assembly passed.
He said citizens are being subjected to higher taxes under this disputed framework without clarity, accountability, or tangible benefits.
Obi concluded by calling for a people-centred tax system, one that supports production, rewards enterprise, protects vulnerable citizens, and rebuilds trust between government and the public.
He insisted that only such a system can make taxation a true instrument of unity, growth, and shared prosperity.