Former Labour Party presidential candidate Peter Obi, now with the African Democratic Congress (ADC), has sharply criticised Nigeria’s new tax reforms, insisting that prosperity cannot be built by “taxing poverty.”
Okay News reports that in a fiery post on X on Friday, Obi warned that heavy burdens on poor citizens undermine economic growth and national unity.
He argued that transformative nations succeed through national consensus, honesty, and transparent leadership that builds trust rather than exploiting people for elite enrichment.
Obi stressed taxation must function as a genuine social contract—rooted in sincerity, fairness, and concern for welfare—with clear explanations of impacts and benefits.
He accused the government of demanding taxes without visible returns or adequate justification, eroding public confidence.
The former Anambra State governor advocated empowering small and medium enterprises, stating, “You cannot tax your way out of poverty; you must produce your way out of it.”
Thriving businesses, he said, naturally expand the tax base through job creation and higher incomes.
Obi raised alarm over alleged manipulation of the tax law, claiming it was “forged” and that the gazetted version differs from what the National Assembly passed.
He called for a lawful, people-centred system that supports enterprise, protects the vulnerable, and restores trust.
Meanwhile, Presidential Committee Chairman Taiwo Oyedele clarified that the reforms involve no automatic bank account debits or requirements for transfer narrations.
President Bola Ahmed Tinubu reaffirmed implementation will proceed as planned from January 1, 2026, describing the laws as a historic opportunity for a fairer fiscal foundation without increasing burdens.
Key provisions exempt low earners (below ₦800,000 annually), small businesses (turnover under ₦100 million), and essentials from various taxes, while reducing corporate rates to 25 per cent.
The government maintains the reforms simplify collection, broaden the base equitably, and prioritise transparency.
, has sharply criticised Nigeria's new tax reforms, insisting that prosperity cannot be built by "taxing poverty."){kind=link}