Peter Obi warns FG: ‘Prosperity cannot come from taxing poverty’

Former Labour Party presidential candidate, Peter Obi, has criticised Nigeria’s current taxation approach, warning that no nation can achieve prosperity by imposing heavier tax burdens on already impoverished citizens.

In a statement released on Friday, Obi said sustainable economic and social development can only be achieved through honest leadership, transparency and national consensus, stressing that taxation must function as a genuine social contract between government and the people.

Drawing from his engagements with leaders across the world, Obi argued that transformative leadership is anchored on truthfulness and accountability, not policies that exploit citizens for the benefit of a privileged few.

“Government must be transparent and truthful because citizens deserve nothing less from those who lead them,” he said, adding that true leaders build trust, unity and shared purpose rather than enriching cronies at the expense of the people.

Obi said Nigeria’s tax policies fall short of these ideals, noting that citizens are increasingly asked to pay higher taxes without clarity, explanation or visible 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,” he said. “Every tax policy should be clearly explained, including its impact on incomes and its expected contribution to national development.”

He warned that taxation should not be seen merely as a revenue-raising tool but as part of a broader strategy to grow wealth and strengthen the nation.

“The purpose of sound fiscal policy is not merely to raise revenue; it is to make the people wealthier so that the nation itself becomes stronger,” Obi said, insisting that Nigerians cannot be taxed out of poverty but must “produce their way out of it”.

The former Anambra State governor stressed the need to empower small and medium-sized enterprises, arguing that when small businesses thrive, jobs are created, incomes rise and the tax base expands naturally.

Obi also raised alarm over what he described as an unprecedented tax fraud controversy, claiming that a tax law currently being enforced was allegedly forged.

“For the first time in Nigeria’s history, a tax law has reportedly been forged,” he said, noting that the National Assembly had reportedly admitted that the version gazetted was not what was actually passed.

He questioned the morality of demanding higher taxes under what he described as a manipulated legal framework, especially in the absence of transparency and tangible benefits to citizens.

“There is no virtue in celebrating increased government revenue while the people grow poorer,” Obi said. “Taxing poverty does not create wealth; it deepens hardship.”

He called for a fair, lawful and people-centred tax system that supports production, rewards enterprise, protects the vulnerable and rebuilds trust between government and citizens.

According to him, only such an approach can make taxation a true tool for national unity, economic growth and shared prosperity.