Former Anambra State Governor and 2023 Labour Party presidential candidate, Peter Obi, has called on the Federal Government to immediately suspend the implementation of Nigeria’s newly introduced tax laws, warning that the framework is riddled with fundamental flaws and lacks public legitimacy.
Obi made the call in a statement shared on his verified X account on Tuesday, where he said the controversial tax regime had been “fundamentally altered” and now contained serious defects that undermine both its credibility and enforceability.
He referenced a recent assessment by global accounting firm KPMG, which reportedly identified 31 critical problem areas within the tax laws, including drafting mistakes, policy inconsistencies and administrative shortcomings.
“It is now undeniable that the tax laws have been fundamentally altered, and even a firm as esteemed as KPMG has pinpointed 31 critical problem areas, from drafting errors to glaring policy contradictions and administrative gaps,” Obi said.
According to the former governor, the findings should compel the government to take urgent corrective measures, describing it as “alarming” that such extensive deficiencies only surfaced after private engagements between tax authorities and external consultants.
“If experts require closed-door discussions to navigate the complexities of our tax laws, what hope does the average Nigerian have of comprehending the obligations being imposed on them?” he asked.
Obi stressed that taxation goes beyond revenue generation, describing it as a social contract between the government and citizens that must be anchored on trust, clarity and visible public benefits.
“Taxation transcends mere fiscal policy; it represents a social contract between the government and its citizens. You cannot enforce a social contract that isn’t understood or trusted,” he said.
He criticised what he termed an extractive approach to taxation in Nigeria, arguing that governments must clearly demonstrate how tax revenues translate into improved healthcare, education, infrastructure and social welfare.
“A tax system devoid of clear public benefits isn’t reform; it is, quite frankly, extortion,” Obi said.
The former Anambra governor also faulted the lack of broad-based consultations before the tax laws were finalised, noting that globally, tax reforms typically involve months or even years of engagement with businesses, workers and civil society groups.
He warned that rolling out a wide-ranging tax regime at a time when Nigerians are grappling with rising food prices, high transportation costs and declining purchasing power could exacerbate poverty and deepen public resentment.
“Without trust, taxation feels like punishment. Without clarity, it breeds confusion. Without evident public value, it amounts to robbery,” Obi said, urging the government to listen to citizens and build a broad national consensus before proceeding with the tax reforms.
