The Labour Party (LP) presidential candidate in the 2023 general election, Peter Obi, has faulted the tax policies of President Bola Tinubu’s administration, saying Nigerians are being asked to pay higher taxes without sufficient explanation, transparency or tangible benefits.
Obi said in a statement posted on X on Friday that meaningful economic and social development can only be realised when governments build national consensus founded on honesty and openness.
He said nations that have achieved sustained progress did so under leaders who were sincere with their people and placed collective well-being above personal gain.
According to him, taxation should function as a true social contract between the state and citizens, adding that tax policies must be properly explained, fairly implemented and considerate of the people’s welfare.
Obi said when there is no clear explanation of how taxes affect earnings or drive development, taxation turns into a burden rather than a catalyst for growth.
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He said Nigeria’s present taxation strategy weakens economic growth and national cohesion, stressing that fiscal policy should primarily aim at improving citizens’ wealth so the country can become stronger.
The former Anambra State governor said economic recovery should start with the empowerment of small and medium-sized enterprises, noting that successful small businesses create employment, boost incomes and organically widen the tax base.
He added that poverty cannot be solved through taxation alone but through increased productivity and enterprise.
Obi also raised concerns over what he described as an unprecedented tax fraud controversy, alleging that a tax law was forged for the first time in Nigeria’s history.
He said the National Assembly had admitted that the gazetted version of the law differed from what was passed, yet Nigerians were still being required to pay higher taxes under the contested framework.
He warned against celebrating rising government revenue while citizens are becoming poorer, arguing that taxing poverty only deepens hardship and runs contrary to good governance principles.
Obi called for a fair, lawful and people-focused tax system that promotes production, rewards enterprise, safeguards vulnerable citizens and rebuilds trust between the government and the people, saying only such a system can make taxation a genuine tool for unity, growth and shared prosperity.
He said, “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. Transformative leaders—those who successfully unite their people around a shared vision—share a defining quality: honesty.
“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.
“It is against this standard of honest leadership that Nigeria’s current approach to taxation must be measured. 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. Without this transparency, taxation becomes a tool of confusion and burden rather than a mechanism for growth and development.
“Nigeria must rethink taxation if it is serious about economic growth, national unity, and shared prosperity. The purpose of sound fiscal policy is not merely to raise revenue; it is to make the people wealthier so that the nation itself becomes stronger. Yet today, Nigerians are asked to pay taxes without clarity, explanation, or visible benefit.
“The solution begins with empowering small and medium-sized enterprises in every community. When small businesses thrive, jobs are created, incomes rise, and the tax base expands naturally. You cannot tax your way out of poverty – you must produce your way out of it.
“This makes the ongoing tax fraud saga particularly alarming. 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.
“Yet citizens are being asked to pay higher taxes under this manipulated framework—without transparency, without explanation, and without corresponding benefits.
“There is no virtue in celebrating increased government revenue while the people grow poorer. Taxing poverty does not create wealth; it deepens hardship.
“Any tax system that makes citizens poorer violates the fundamental principles of good governance and sound fiscal policy.
“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. -PO”