Former Anambra State governor Peter Obi has criticised Nigeria’s tax implementation approach, warning that imposing heavier burdens on poor citizens would weaken economic growth, social trust, and national unity.
In a statement shared on his X account, Obi argued that prosperity cannot come from taxing poverty. Instead, he said taxation should function as a transparent social contract built on fairness, honesty, and visible public benefit.
Obi Says Growth Requires Consensus and Trust
According to Obi, nations that achieve lasting development build consensus around fiscal policies.
“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,” he wrote.
He stressed that governments must clearly explain how tax policies affect incomes and how revenues will translate into tangible development outcomes.
Tax Policy Should Improve Citizens’ Welfare
The former Labour Party presidential candidate said taxation should not focus only on increasing government revenue. Instead, he argued, fiscal policy should make citizens wealthier through production, enterprise, and job creation.
“Nigeria must rethink taxation if it is serious about economic growth, national unity, and shared prosperity,” Obi said. He added that Nigerians are often asked to pay taxes without clarity or visible benefits.
According to him, such an approach erodes public confidence and undermines good governance.
Obi Calls for SME-Driven Growth
Obi further argued that empowering small and medium-sized enterprises (SMEs) would naturally expand the tax base. He said this strategy is more sustainable than placing additional pressure on households already struggling with rising living costs.
“You cannot tax your way out of poverty — you must produce your way out of it,” he said.
Comments Come Amid Tax Reform Debate
Obi’s remarks come amid growing debate over Nigeria’s tax reforms and revenue measures. Recently, the Federal Government has intensified efforts to boost non-oil revenue to manage rising debt servicing costs, a weak naira, and fuel subsidy removal.
The debate deepened after controversy over an amended tax law, following acknowledgements of discrepancies between the version passed by the National Assembly and the one later gazetted.
Obi described the situation as alarming, saying citizens are being asked to pay higher taxes under a framework whose legitimacy has been questioned.
“There is no virtue in celebrating increased government revenue while the people grow poorer,” he said.
