Former presidential candidate of the Labour Party, Mr. Peter Obi, has warned that Nigeria cannot achieve sustainable prosperity by imposing heavier taxes on a population already burdened by poverty, calling for a people-centred, transparent and lawful taxation system anchored on production and wealth creation.
In a post on his X handle on January 2, 2026, Obi said his interactions with global leaders who have successfully transformed their countries revealed that lasting economic and social progress begins with national consensus, honesty and transparent leadership.
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,” Obi said. “Transformative leaders—those who successfully unite their people around a shared vision—share a defining quality: honesty.”
He stressed that government must be truthful and transparent, noting that citizens deserve nothing less from those entrusted with leadership.
“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,” he said.
Obi argued that Nigeria’s current approach to taxation falls short of these standards, insisting that taxation should function as a genuine social contract rooted in fairness, sincerity and concern for citizens’ welfare.
“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,” he said. “Every tax policy should be clearly explained, including its impact on incomes and its expected contribution to national development.”
He warned that without transparency, taxation becomes “a tool of confusion and burden rather than a mechanism for growth and development.”
The former Anambra State governor said Nigeria must fundamentally rethink its tax policies 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,” Obi said. “Yet today, Nigerians are asked to pay taxes without clarity, explanation, or visible benefit.”
According to him, the pathway to sustainable revenue generation lies in empowering small and medium-sized enterprises (SMEs) across communities, rather than increasing the tax burden on struggling citizens.
“The solution begins with empowering small and medium-sized enterprises in every community,” he said. “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.”
Obi expressed deep concern over what he described as an ongoing tax fraud saga, calling it unprecedented and alarming.
“For the first time in Nigeria’s history, a tax law has reportedly been forged,” he said. “The National Assembly itself has admitted that the version gazetted is not what was passed into law.”
He faulted the move to impose higher taxes under what he described as a manipulated legal framework, saying citizens were being burdened “without transparency, without explanation, and without corresponding benefits.”
“There is no virtue in celebrating increased government revenue while the people grow poorer,” Obi warned. “Taxing poverty does not create wealth; it deepens hardship.”
He concluded by calling for a fair, lawful and people-centred tax system that supports production, rewards enterprise, protects the vulnerable and rebuilds trust between the government and the people.
“Nigeria needs a tax system that restores trust between government and citizens,” Obi said. “Only then can taxation become a true tool for unity, growth, and shared prosperity.”
