Former Anambra State governor Peter Obi has criticized Nigeria’s approach to taxation, warning that raising revenue by placing heavier burdens on poor citizens would weaken economic growth, erode social trust and threaten national unity.
In a statement posted on his X account, Obi argued that prosperity cannot be achieved by taxing poverty, insisting that taxation should function as a transparent social contract founded on fairness, honesty and visible public benefit.
Drawing from his interactions with leaders of countries that have achieved sustained progress, the former governor said national development begins with broad consensus and clear communication between government and citizens. He stressed that authorities must be truthful about how tax policies affect incomes and how revenues will translate into tangible development outcomes.
Obi, the Labour Party’s presidential candidate in the 2023 election, said taxation should not be driven solely by the desire to increase government revenue but by the need to make citizens wealthier through production, enterprise and job creation. According to him, sound fiscal policy should strengthen the people so the nation itself can grow stronger.
He argued that empowering small and medium-sized enterprises would naturally expand the tax base, rather than placing additional pressure on households already struggling with rising living costs. “You cannot tax your way out of poverty — you must produce your way out of it,” he said.
His comments come amid heightened public debate over Nigeria’s tax reforms and revenue measures. In recent months, the federal government has intensified efforts to boost non-oil revenue as it grapples with rising debt servicing costs, a weak naira and the impact of fuel subsidy removal. These efforts have included changes to value-added tax administration, excise duties and moves to widen the tax net, some of which took effect at the start of the year.
The debate has intensified following controversy over a recently amended tax law, after the National Assembly acknowledged discrepancies between the version passed by lawmakers and the version later gazetted. Obi described the episode as alarming and unprecedented, noting that citizens were being asked to pay higher taxes under a framework whose legitimacy had been questioned, without clear explanations or assurances of public benefit.
“There is no virtue in celebrating increased government revenue while the people grow poorer,” he said, adding that any tax system that impoverishes citizens violates the principles of good governance and sound fiscal policy.
Nigeria’s tax-to-GDP ratio remains among the lowest globally, estimated at below 10 per cent, according to official data. Successive governments have maintained that improving tax collection is critical to funding infrastructure, healthcare and education.
