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Peter Obi tax criticism targets Nigeria’s tax reforms and revenue drive
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Obi warns taxing the poor will weaken economic growth, trust, and unity
- Calls for fair taxation focused on production, jobs, and SMEs
Former Anambra State governor and 2023 Labour Party presidential candidate, Peter Obi, has faulted Nigeria’s current tax implementation approach, warning that imposing heavier tax burdens on poor citizens would deepen hardship and stall national development.
In a statement shared on his X (formerly Twitter) handle, Obi said sustainable prosperity cannot be built by taxing poverty, stressing that taxation should function as a transparent social contract anchored on fairness, accountability, and visible public benefit.
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Drawing from his interactions with global leaders, Obi said countries that achieved lasting economic growth did so by first building national consensus and ensuring citizens understood how tax policies affected their incomes and translated into development.
He argued that the goal of taxation should go beyond boosting government revenue to empowering citizens through production, enterprise, and job creation, noting that a wealthier population naturally strengthens the state.
According to him, Nigeria’s fiscal strategy places excessive pressure on households already struggling with rising living costs, without clear explanations or tangible benefits.
He maintained that supporting small and medium-sized enterprises (SMEs) would expand the tax base more sustainably than burdening low-income earners.
“You cannot tax your way out of poverty; you must produce your way out of it,” Obi stated, insisting that any tax system that impoverishes citizens violates the core principles of good governance.
His remarks come amid growing public debate over Nigeria’s tax reforms, including changes to VAT administration, excise duties, and efforts to widen the tax net following the removal of fuel subsidies.
The controversy was further heightened after the National Assembly admitted discrepancies between a tax law passed by lawmakers and the version later gazetted.
Obi described the situation as troubling, warning that Nigerians were being asked to pay higher taxes under a framework whose credibility had been questioned.
Nigeria’s tax-to-GDP ratio, estimated at below 10 percent, remains among the lowest globally. While successive governments argue that improved tax collection is critical to funding infrastructure, healthcare, and education, Obi cautioned that increasing revenue at the expense of citizens’ welfare would only weaken the nation in the long run.
