Former Anambra State Governor and Labour Party presidential candidate, Peter Obi, has criticised Nigeria’s taxation approach, warning that economic growth cannot be achieved by increasing the burden on poor citizens.
In a post on X (formerly Twitter) on Saturday, Mr Obi said meaningful development must be built on transparency, trust and broad national consensus, rather than policies that worsen hardship for ordinary Nigerians.
“True leadership is about building trust, not extracting money from citizens who can least afford it, you cannot create wealth by making the poor poorer. That is not governance; it is exploitation,” he said.
He argued that taxation should operate as a social contract between the government and the people, anchored on fairness and accountability.
“A tax system should be fair, transparent, and focused on the welfare of the people, when citizens understand how their contributions are used for development, taxation becomes a tool for growth, not a source of hardship,” Mr Obi said.
The former governor also highlighted the importance of small and medium-sized enterprises (SMEs) to sustainable economic growth, noting that empowering businesses would naturally strengthen government revenue.
“When we empower small and medium-sized enterprises, we empower our people. Thriving businesses create jobs, raise incomes, and naturally expand the tax base, poverty is not eliminated by taxing it,it is eradicated by production and opportunity,” he said.
Raising concerns over recent tax controversies, Mr Obi warned of what he described as a breakdown in legislative integrity and public trust.
“For the first time in Nigeria’s history, we may be facing a forged tax law, citizens are being forced to pay higher taxes under a framework that even the National Assembly has acknowledged is different from what was passed, this is a betrayal of public trust,” he said.
He described it as a revenue-first mindset in government policy, cautioning that economic success should be measured by citizens’ welfare, not just higher collections.
“Celebrating increased government revenue while citizens grow poorer is misguided. Taxation should lift people, not deepen their hardship, any policy that punishes the majority while benefiting a few violates the principles of good governance,” Mr Obi said.
Peter Obi has emphasised that transparency is essential for any effective tax system, noting that citizens must clearly understand why they are taxed and how such policies benefit the economy.
“Every tax law must be clearly communicated ,People must understand its impact on their incomes and how it contributes to national growth ,without clarity, taxation becomes a weapon, not a partnership between the government and the people,” he said.
He further added that Nigeria needs a tax framework built on fairness and trust, one that prioritises people while encouraging economic productivity.
“We need a tax system that is fair, lawful, and people-centred,one that supports production, rewards enterprise, protects vulnerable Nigerians, and restores trust. That is how taxation can truly drive unity, growth, and shared prosperity,” he said.