Former Anambra State Governor, Peter Obi, has cautioned that Nigeria risks worsening hardship and weakening national unity by implementing tax policies that place heavier burdens on an already struggling population.
According to Obi, true prosperity cannot be achieved through policies that impoverish citizens. He stressed that sustainable economic growth must be built on trust, honesty, and productivity rather than excessive taxation.
The former presidential candidate made these remarks in a statement shared on X, where he addressed concerns surrounding taxation, leadership responsibility, and what he described as the weakening social contract between the government and the people.
Drawing from his interactions with leaders across the globe, Obi noted that countries that achieved lasting transformation did so by uniting their citizens around a shared national vision rooted in truth. He argued that leadership devoid of honesty erodes public trust and undermines the foundation of development.
“As I travel the world and engage with leaders who have transformed their nations, one lesson stands out: lasting economic and social progress begins with national consensus,” Obi said. “Transformative leaders share one defining trait—honesty. Governments must be transparent and truthful because citizens deserve nothing less.”
Obi emphasized that taxation should operate as a genuine social contract based on fairness, sincerity, and concern for citizens’ welfare. He stated that every tax policy should be clearly explained, including how it affects incomes and contributes to national development.
“If taxation is to function as a true social contract, it must be rooted in transparency and fairness. Without this, taxation becomes a source of confusion and hardship rather than a tool for growth,” he added.
He further argued that Nigeria’s fiscal challenge is not merely about generating more revenue but about creating wealth for citizens so the nation can grow stronger. According to him, Nigerians are being asked to pay higher taxes without adequate explanation, clarity, or visible public benefits.
Obi identified the empowerment of small and medium-sized enterprises (SMEs) as the cornerstone of sustainable economic growth, noting that thriving small businesses create jobs, increase incomes, and naturally expand the tax base.
“The solution begins with empowering small and medium-sized enterprises in every community. You cannot tax your way out of poverty; you must produce your way out of it,” he stated.
The former governor also raised concerns over what he described as an unprecedented tax fraud controversy, alleging that a tax law currently being enforced is not the same version passed by the National Assembly. He claimed reports suggest that lawmakers themselves have acknowledged discrepancies between what was approved and what was eventually gazetted.
“For the first time in Nigeria’s history, a tax law has reportedly been forged. Yet citizens are being asked to pay higher taxes under this altered framework, without transparency, explanation, or corresponding benefits,” Obi said.
He concluded by warning against celebrating increased government revenue while citizens continue to grow poorer, describing such a situation as a failure of governance rather than an achievement.
“There is no virtue in celebrating rising government revenue when the people are getting poorer. Any tax system that leaves citizens worse off violates the basic principles of good governance and sound fiscal policy,” he said.
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