Former Anambra State Governor and 2023 Labour Party presidential candidate, Peter Obi, has strongly condemned Nigeria's newly implemented tax reforms, cautioning that prosperity cannot be achieved by imposing heavier burdens on an already impoverished population. In a detailed statement posted on his X (formerly Twitter) account on January 2, 2026, Obi argued that genuine economic growth must be rooted in honesty, transparency, fairness, and policies that prioritize making citizens wealthier rather than poorer.
Obi, drawing from his global engagements with transformative leaders, emphasized that lasting national progress stems from building consensus through truthful governance. "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 wrote. He warned that leadership devoid of honesty erodes trust, destroys unity, and undermines developmental foundations.
Central to Obi's critique is the concept of taxation as a "genuine social contract" between government and citizens. He insisted that effective tax policies must be grounded in sincerity, fairness, and genuine concern for public welfare, with clear explanations of their impacts and benefits. "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. Every tax policy should be clearly explained, including its impact on incomes and its expected contribution to national development. Without this transparency, taxation becomes a tool of confusion and burden rather than a mechanism for growth and development," Obi stated.
The former governor highlighted that Nigeria's fiscal challenges cannot be resolved by merely increasing revenue through burdensome taxes on the poor. Instead, he advocated for a shift toward production-driven growth. "Prosperity cannot come by taxing poverty... You cannot tax your way out of poverty — you must produce your way out of it," he asserted, calling for empowerment of small and medium-sized enterprises (SMEs) to drive economic recovery. Obi stressed that sound fiscal policy should aim to enrich citizens, enabling broader national strength, rather than celebrating government revenue gains amid rising citizen poverty.
Obi's remarks come against the backdrop of Nigeria's controversial tax reform laws, which took full effect on January 1, 2026. These include the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act, and Joint Revenue Board (Establishment) Act—described by the government as a comprehensive overhaul to simplify taxation, broaden the base, and exempt low-income earners. However, ongoing debates involve allegations of discrepancies between passed and gazetted versions, with opposition figures demanding scrutiny. The Federal Government has defended the reforms as pro-people, exempting minimum wage earners and small businesses while aiming to boost revenue without additional burdens on the vulnerable.
He proposed a "fair, lawful, and people-centred tax system" that supports production, rewards enterprise, protects the vulnerable, and rebuilds eroded trust. "Nigeria needs a fair, lawful, and people-centred tax system—one that supports production, rewards enterprise, protects the vulnerable, and restores trust between government and citizens. Only then can taxation become a true tool for unity, growth, and shared prosperity," Obi concluded.
Obi's intervention has resonated amid widespread economic hardships, with over 130 million Nigerians in multidimensional poverty and high inflation eroding purchasing power. Analysts note his consistent advocacy for production over consumption taxes aligns with calls for structural reforms prioritizing manufacturing and agriculture. Supporters praise his focus on transparency as essential for rebuilding the social contract, while critics from the ruling party view such statements as politicizing necessary fiscal measures.
As debates intensify over the reforms' implementation, Obi's voice adds to opposition demands for greater accountability and citizen-centric policies. His emphasis on honest leadership underscores broader concerns about governance trust in Nigeria, where fiscal decisions increasingly shape public discourse on equity and development.
This statement reinforces Obi's profile as a vocal critic of economic policies perceived as regressive, positioning him as an advocate for inclusive growth in a nation grappling with revenue shortfalls and social inequalities.
The critique also highlights philosophical differences in economic strategy: while the government promotes the reforms as modernizing a fragmented system and increasing non-oil revenue, voices like Obi's argue for complementary measures like subsidy reinvestments in social safety nets and industrial incentives. With inflation persisting and unemployment high among youth, the tax debate encapsulates deeper questions about balancing fiscal consolidation with social welfare.
Obi's global comparisons serve to benchmark Nigeria against successful models, where progressive taxation and accountable spending foster voluntary compliance. He implies that without addressing corruption and inefficiency in public expenditure, higher taxes risk fueling resentment rather than revenue.
As 2026 begins, this discourse sets the stage for potential legislative reviews or public consultations on the reforms. Civil society and business groups have echoed similar concerns, calling for impact assessments and phased implementation to mitigate hardships.
Ultimately, Obi's message calls for a paradigm shift: from revenue maximization to holistic development that lifts citizens out of poverty, thereby expanding the tax base organically through prosperity rather than coercion.
