Former Anambra State Governor and Labour Party presidential candidate, Peter Obi, has cautioned that Nigeria cannot attain sustainable prosperity through tax policies that burden the poor, insisting that genuine economic progress must be anchored on honesty, transparency and national consensus.
In a statement reflecting on his interactions with global leaders who have successfully transformed their countries, Obi said enduring social and economic development begins with leaders uniting their people around a shared vision founded on trust and integrity. According to him, governments must be transparent and truthful, noting that citizens deserve honesty from those entrusted with leadership.
Obi argued that taxation, if it is to function as a true social contract, must be fair, sincere and clearly explained to the people. He stressed that tax policies should transparently outline their impact on incomes and demonstrate how the proceeds will translate into tangible national development, warning that the absence of clarity turns taxation into a source of confusion and hardship rather than growth.
He urged Nigeria to fundamentally rethink its approach to taxation, stating that the objective of fiscal policy should go beyond revenue generation to improving the wealth and welfare of citizens. Obi lamented that Nigerians are increasingly asked to pay higher taxes without adequate explanation or visible benefits.
Highlighting small and medium-sized enterprises (SMEs) as the backbone of inclusive growth, Obi said empowering local businesses would naturally expand the tax base by creating jobs and increasing incomes. “You cannot tax your way out of poverty; you must produce your way out of it,” he maintained.
Obi also expressed concern over what he described as an unprecedented tax fraud controversy, alleging that a tax law had been forged for the first time in Nigeria’s history. He noted that the National Assembly had reportedly acknowledged that the version of the law gazetted differed from what was passed, yet citizens were being subjected to higher taxes under what he termed a manipulated framework.
He warned against celebrating increased government revenue at the expense of citizens’ welfare, stressing that taxing poverty only deepens hardship and undermines good governance. According to him, any tax system that leaves citizens poorer violates the core principles of sound fiscal management.
Obi called for a fair, lawful and people-centred tax regime that supports production, rewards enterprise, protects the vulnerable and rebuilds trust between government and the governed. He said only such a system can position taxation as a genuine tool for national unity, economic growth and shared prosperity.
