Obi Warns Nigeria’s Taxation Policy Will Worsen Economic Hardship

Former Labour Party presidential candidate, Peter Obi, has warned that Nigeria’s current taxation policy risks deepening economic hardship and worsening the living conditions of citizens.

In a statement shared on his X handle on Friday, Obi argued that prosperity cannot be achieved by placing heavier tax burdens on a population already struggling with poverty. He said taxation can only function as a genuine social contract when it is guided by sincerity, fairness and concern for the welfare of the people.

Drawing from his engagements with leaders across the world, Obi noted that sustainable economic and social progress is built on national consensus and honest leadership. According to him, leaders who successfully unite their people around a shared vision are defined by transparency and truthfulness, qualities he said are essential for public trust.

He stressed that leadership should be rooted in service rather than personal gain, adding that societies progress when leaders focus on building unity, trust and shared purpose instead of exploiting citizens to enrich a few individuals.

Obi said Nigeria’s taxation framework must be assessed against these standards. He maintained that every tax policy should be clearly explained to citizens, including its impact on incomes and its contribution to national development. Without such openness, he warned, taxation becomes a source of confusion and burden rather than a tool for growth.

The former Anambra State governor called for a fundamental rethink of the country’s tax system, noting that sound fiscal policy should aim to make citizens wealthier so the nation itself can grow stronger. He lamented that Nigerians are often asked to pay taxes without clarity or visible benefits, a situation he described as counterproductive.

According to Obi, economic recovery should begin with empowering small and medium scale enterprises across communities. He said when businesses thrive, jobs are created, incomes increase and the tax base expands naturally, adding that no country can tax its way out of poverty without boosting production.

He also expressed concern over what he described as a tax fraud saga, alleging that Nigeria was witnessing an unprecedented situation in which a tax law was reportedly forged. Obi said the National Assembly had admitted that the version of the law gazetted differed from what was passed, yet citizens were being asked to pay higher taxes under that framework without transparency or corresponding benefits.

Obi warned against celebrating rising government revenue while citizens grow poorer, insisting that taxing poverty only deepens hardship. He called for a lawful and people centred tax system that supports production, rewards enterprise, protects the vulnerable and restores trust between government and citizens. According to him, only such an approach can make taxation a true instrument for unity, growth and shared prosperity.