Why Tinubu's tax regime is counterproductive now - Peter Obi

Peter Obi, the 2027 Presidential candidate hopeful of the African Democratic Congress, ADC, has made facts known on why the new tax policy of the Federal government should not be in place by now.

According to him, the high poverty level in the country does not deserve higher taxation in Nigeria. 

The 2023 President candidate of the Labour Party, LP, and former Anambra State Governor warned that Nigeria risks deepening hardship and undermining national cohesion by pursuing a tax regime that places greater burdens on an already impoverished population.

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

Obi in his socal media handle on Friday 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 countries 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,” Obi said.

He maintained that taxation should operate 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.

Obi argued that Nigeria’s fiscal challenge is not simply about raising revenue but about making citizens wealthier so the nation itself can grow stronger. He said Nigerians are currently being asked to pay taxes without clarity, explanation, or visible public benefit.

According to him, taxing poverty does not create wealth but entrenches hardship.

“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,” he said.

Obi called for a fair, lawful, and people-centred tax system that supports production, rewards enterprise, protects the vulnerable, and restores trust between government and citizens, saying only such an approach can turn taxation into a true instrument for unity, growth, and shared prosperity.