Former Labour Party presidential candidate, Mr. Peter Obi, has called on the Federal Government to immediately pause the implementation of Nigeria’s controversial tax laws, warning that the reforms are riddled with errors, lack public trust, and impose fresh burdens on already struggling citizens.
Obi made the call in a statement posted on his verified X (formerly Twitter) account, where he argued that recent revelations by global accounting firm KPMG had exposed deep flaws in the tax framework.
According to him, it is now “undeniable that the tax laws have been fundamentally altered,” noting that KPMG identified 31 critical problem areas, ranging from drafting errors to “glaring policy contradictions and administrative gaps.”
“This revelation should prompt every responsible government to take immediate action,” Obi said.
He described it as deeply troubling that the issues only came to light after private meetings between the National Revenue Service and KPMG, questioning how ordinary Nigerians are expected to understand the tax regime.
“If experts require closed-door discussions to navigate the complexities of our tax laws, what hope does the average Nigerian have of comprehending the obligations being imposed on them?” he asked.
Obi stressed that taxation goes beyond revenue generation, describing it as a social contract between the government and the people.
“Taxation transcends mere fiscal policy; it represents a social contract between the government and its citizens. You cannot enforce a social contract that isn’t understood or trusted,” he said.
He noted that in many countries, tax policies are justified by tangible public benefits such as quality healthcare, education, jobs, infrastructure, and social safety nets. In contrast, Obi argued that Nigeria’s approach focuses largely on extraction rather than value delivery.
“In Nigeria, the narrative is all about how much more the government seeks to extract, rather than what it is prepared to offer in return. A tax system devoid of clear public benefits isn’t reform; it is, quite frankly, extortion,” he stated.
The former Anambra State governor also criticised the absence of broad consultations before the tax laws were finalised, saying legitimate tax reforms typically involve months or years of engagement with businesses, workers and civil society.
“People must be informed not only about their financial contributions but also about the benefits that will ensue. This is how legitimacy is cultivated,” Obi said, adding that Nigerians have been left “completely in the dark” about both the rules and the expected benefits of the new taxes.
He lamented that enforcement is being pursued without consensus or adequate explanation, even as citizens continue to suffer the effects of subsidy removal.
“Even after the removal of subsidies, Nigerians remain in limbo, waiting for tangible benefits or relief. Instead, they are grappling with skyrocketing food prices, exorbitant transport costs, dwindling purchasing power, and escalating poverty levels,” he said.
Obi warned that introducing a wide-ranging tax regime under such conditions, especially one flagged with multiple inconsistencies, reflects poor governance.
“Before we have even begun to address these issues, we are being thrust into an expansive new tax regime, riddled with inconsistencies and producing 31 alarming red flags from a leading global accounting firm. This is not the hallmark of responsible governance,” he said.
He concluded by cautioning that taxation without trust and clarity would only deepen public resentment.
“Without trust, taxation feels like punishment. Without clarity, it breeds confusion. Without evident public value, it amounts to robbery,” Obi said.
Calling for a change in approach, he urged the government to prioritise dialogue, transparency and consensus-building.
“Nigeria cannot afford to place further burdens on its already struggling citizens. What we need is a government that listens, communicates effectively, and prioritises building national consensus. This is the only viable path to genuine reform, unity, growth, and shared prosperity,” he added.
