Former Labour Party presidential candidate, Peter Obi, has criticised Nigeria’s current tax policies, warning that national prosperity cannot be achieved by imposing heavier financial burdens on the poor.

In a statement posted on his X handle on Friday, Obi said “prosperity cannot come by taxing poverty,” adding that nations which have achieved lasting economic and social development did so through honest leadership, national consensus and people-centred policies.

He stated that taxation, if it is to function as a genuine social contract, must be anchored on fairness, sincerity and a clear concern for the welfare of citizens.

“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,” Obi said.

He stressed that every tax policy must be clearly communicated to the public, including its impact on incomes and how it is expected to contribute to national development.

“Every tax policy should be clearly explained, including its impact on incomes and its expected contribution to national development,” he said.

Obi warned that without transparency, taxation risks becoming a source of confusion and hardship rather than a catalyst for growth and development.

“Without this transparency, taxation becomes a tool of confusion and burden rather than a mechanism for growth and development,” he added.

The former Anambra State governor argued that Nigeria must fundamentally rethink its taxation approach if it is serious about economic growth, national unity and shared prosperity.

He said fiscal policy should be designed to make citizens wealthier, rather than focusing solely on increasing government revenue.

Obi emphasised that empowering small and medium-sized enterprises remains central to sustainable economic growth.

He explained that when small businesses thrive, employment expands, incomes increase and the tax base grows organically.

“You cannot tax your way out of poverty — you must produce your way out of it,” Obi added.

He cautioned that celebrating rising government revenue while citizens become poorer undermines the principles of good governance.

Obi insisted that any tax system that deepens poverty violates the basic principles of sound fiscal management.

“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,” he concluded.

Obi’s remarks come amid sustained public debate over Nigeria’s new tax reform laws, which came into effect on January 1, 2026.

Opposition lawmakers and civil society organisations have raised concerns over discrepancies between the versions of the tax bills passed by the National Assembly and the versions later gazetted by the Federal Government.

These discrepancies have triggered questions about the authenticity and constitutional validity of the tax laws.

In response, the leadership of the National Assembly directed the release of certified true copies of the tax bills signed into law to allow for public scrutiny.

Lawmakers said some controversial provisions contained in the gazetted versions did not reflect what was passed on the floor of the legislature, prompting institutional steps to address the concerns.

Despite the controversy, the President Bola Tinubu administration has insisted that the tax laws will be implemented as scheduled.

The administration has rejected calls for a delay, stating that the reforms are designed to support structural reset, harmonisation and economic growth.

The Federal Government has also maintained that the tax reforms are not intended to impose heavier burdens on low-income Nigerians.