Pause controversial tax law, consult citizens — Obi tells FG
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Former Anambra State Governor and Labour Party presidential candidate, Peter Obi, has called for an immediate pause in the implementation of Nigeria’s newly introduced tax laws, warning that the framework is riddled with fundamental flaws and lacks public legitimacy.
In a statement posted on his verified X account on Tuesday, Obi said the controversial tax regime had been “fundamentally altered” and now contained serious defects that undermine its credibility and enforceability.
He cited a recent review by global accounting firm KPMG, which reportedly identified 31 critical problem areas in the tax laws, ranging from drafting errors to policy contradictions and administrative gaps.
“It is now undeniable that the tax laws have been fundamentally altered, and even a firm as esteemed as KPMG has pinpointed 31 critical problem areas, from drafting errors to glaring policy contradictions and administrative gaps,” Obi said.
According to him, the discovery should compel the government to take urgent corrective action, describing it as “alarming” that such deficiencies only came to light after private engagements between tax authorities and consultants.
“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 argued that taxation goes beyond revenue generation and represents a social contract between the government and citizens, which, he said, must be built on trust, clarity and tangible public benefits.
“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 criticised what he described as an extractive approach to taxation in Nigeria, insisting that governments should clearly demonstrate how taxes translate into improved healthcare, education, infrastructure and social welfare.
“A tax system devoid of clear public benefits isn’t reform; it is, quite frankly, extortion,” Obi said.
The former governor also faulted the absence of broad consultations before the tax laws were finalised, noting that globally, tax reforms usually involve months or years of engagement with businesses, workers and civil society.
He warned that introducing a wide-ranging tax regime at a time Nigerians are struggling with high food prices, transport costs and declining purchasing power could worsen poverty and deepen public resentment.
“Without trust, taxation feels like punishment. Without clarity, it breeds confusion. Without evident public value, it amounts to robbery,” Obi said, urging the government to listen to citizens and build national consensus before proceeding.
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