Former Anambra State Governor and ex–Labour Party presidential candidate, Peter Obi, has cautioned that Nigeria could worsen economic hardship and weaken national unity if it continues to impose tax policies that further burden an already impoverished population.
In a statement shared on his X (formerly Twitter) handle, Obi argued that genuine prosperity cannot emerge from policies that make citizens poorer, stressing that sustainable economic growth must be anchored on trust, honesty and productivity.
He said his interactions with leaders across the world showed that countries which achieved lasting transformation did so by uniting their people around a shared national vision built on truth and transparency. According to him, leadership that lacks honesty erodes consensus and undermines development.
Obi maintained that taxation should operate as a true social contract between the government and the people, rooted in fairness, sincerity and concern for citizens’ welfare. He said every tax policy must be clearly explained, including its impact on incomes and how the proceeds will contribute to national development.
He warned that without transparency, taxation becomes a source of confusion and hardship rather than a tool for growth, noting that Nigerians are increasingly being asked to pay higher taxes without adequate clarity, explanation or visible public benefits.
The former governor argued that Nigeria’s fiscal challenge goes beyond revenue generation, insisting that the real task of government is to make citizens wealthier so the nation can grow stronger. He identified the empowerment of small and medium-sized enterprises (SMEs) as the backbone of sustainable economic growth, explaining that thriving small businesses create jobs, raise incomes and naturally expand the tax base.
“You cannot tax your way out of poverty; you must produce your way out of it,” Obi said, adding that supporting SMEs in every community is essential for long-term economic stability.
He also raised concern over what he described as an unprecedented tax fraud controversy, alleging that a tax law currently being implemented is not the version passed by the National Assembly. Obi claimed reports indicate that the legislature itself has acknowledged discrepancies between the approved bill and what was eventually gazetted.
According to him, it is troubling that citizens are being asked to pay higher taxes under a framework allegedly altered without transparency or accountability.
Obi warned against celebrating increased government revenue while citizens continue to grow poorer, describing such outcomes as a failure of governance rather than a success.
“There is no virtue in celebrating higher government revenue when the people are becoming poorer,” he said, stressing that any tax system that impoverishes citizens violates the core principles of good governance and sound fiscal policy.
