By Eteteonline
Peter Obi, a well-known politician and African Democratic Congress (ADC) member, has criticized Nigeria’s existing tax policy and cautioned that burdening the poor with greater taxes will not lead to prosperity.
Former Labour Party presidential candidate Peter Obi criticized the government’s taxing strategy and demanded openness, equity, and people-centered fiscal policies in a statement released on Friday, January 3, 2026.
Obi’s remarks coincide with a public discussion about Nigeria’s recently enacted tax reform legislation, which went into force on January 1, 2026.
Obi emphasized that taxes should function as a true social contract between the people and the government, arguing that Nigeria’s current tax system does not meet these requirements.
“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.”
“Government must be transparent and truthful because citizens deserve nothing less from those who lead them. 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.”
“Without this transparency, taxation becomes a tool of confusion and burden rather than a mechanism for growth and development.”
“You cannot tax your way out of poverty – you must produce your way out of it.”
“Prosperity cannot come by taxing poverty. 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 claimed that the practice of asking Nigerians to pay taxes without providing a clear justification or obvious advantages jeopardizes both national cohesion and economic progress.
He advocated for an equitable, legal, and people-centered tax structure that boosts business, safeguards the weak, and rebuilds public confidence.
He maintained that honesty is the foundation of transformative leadership and that governments need to be open and honest in order to gain the confidence of their constituents.
He maintained that if Nigeria is serious about economic progress, national unity, and shared prosperity, it needs to reconsider its taxation strategy. He also added that fiscal policy should aim to increase citizen wealth rather than just government revenue.
Obi emphasized that encouraging small and medium-sized businesses is still essential to sustained growth, pointing out that when these businesses prosper, jobs are generated, incomes increase, and the tax base naturally grows.
“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,” he concluded.
Obi also emphasized the significance of enabling small and medium-sized businesses, pointing out that output, not high taxes, is what propels economic growth.
Obi also claimed that the new tax law was twisted and voiced alarm about what he called an ongoing tax fraud scandal.
“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,” Obi wrote, warning that citizens were being asked to pay higher taxes under a framework lacking transparency and legitimacy.”
He stressed that any tax structure that exacerbates poverty violates fundamental principles of sound fiscal management and cautioned that celebrating higher government revenue while residents become poorer undermines good governance.
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