Tax laws that make citizens poorer violate the principles of good governance - PETER OBI

Saturday, January 3, 2026 - Former Anambra State Governor, Peter Obi has warned that Nigeria risks deepening hardship and undermining national cohesion by pursuing a tax regime that places heavier burdens on an already impoverished population.

He said genuine prosperity cannot be achieved through policies that make citizens poorer, stressing that economic growth must be built on trust, honesty and productivity.

Obi made the remarks in a statement shared on X, where he addressed issues of taxation, leadership responsibility and the weakening social contract between government and citizens.

Drawing from his engagements with leaders across the world, Obi said nations that achieved lasting transformation did so by uniting their people around a shared vision anchored on truth. He argued that leadership without honesty destroys consensus and weakens the foundations of development.

“As I travel the world and meet leaders who have transformed their nations, one lesson is clear: lasting economic and social progress begins with national consensus. Transformative leaders share a defining quality, honesty. Government must be transparent and truthful because citizens deserve nothing less from those who lead them,” he said.

Obi maintained that taxation should function as a genuine social contract, grounded in sincerity, fairness and concern for citizens’ welfare. According to him, every tax policy must be clearly explained, including its impact on incomes and how it contributes to national development.

“If taxation is to function as a genuine social contract, it must be rooted in sincerity, fairness and concern for the welfare of the people. Without transparency, taxation becomes a tool of confusion and burden rather than a mechanism for growth and development,” he said.

The former governor argued that Nigeria’s fiscal challenge is not merely about raising revenue but about making citizens wealthier so the nation can grow stronger. He said Nigerians are being asked to pay higher taxes without clarity, explanation or visible public benefits.

He identified the empowerment of small and medium-sized enterprises as the foundation for sustainable economic growth, noting that thriving small businesses create jobs, raise 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,” Obi said.

Obi also expressed concern over what he described as an unprecedented tax fraud controversy, alleging that a tax law currently in use is not the version passed by the National Assembly.

He said reports indicate that the legislature itself has 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 manipulated framework, without transparency, explanation or corresponding benefits,” he said.

He warned against celebrating increased government revenue while citizens grow poorer, describing such outcomes as a failure of governance rather than success.

“There is no virtue in celebrating increased government revenue while the people grow poorer. Any tax system that makes citizens poorer violates the fundamental principles of good governance and sound fiscal policy,” Obi said.