The Labour Party’s presidential candidate in the 2023 general election, Peter Obi, has told the Federal Government that prosperity cannot be achieved by taxing the poor.
Obi, in a statement posted on X on Friday, said sustainable economic and social development can only be achieved when governments build national consensus based on honesty and transparency.
He argued that nations that have recorded lasting progress were led by individuals who were truthful with their people and focused on shared prosperity rather than personal enrichment.
According to him, taxation should function as a genuine social contract between the government and citizens, stressing that tax policies must be clearly communicated, fairly applied, and sensitive to the welfare of the people.
Obi said that when the impact of taxes on incomes and national development is not properly explained, taxation becomes a burden instead of a tool for growth.
The former Anambra State governor maintained that Nigeria’s current tax approach undermines economic growth and national unity, adding that sound fiscal policy should aim to make citizens wealthier so the country can become stronger.
He noted that asking Nigerians to pay taxes without clarity or observable benefits erodes public trust.
Obi said economic recovery should start with empowering small and medium-sized enterprises, explaining that thriving small businesses create jobs, increase incomes, and naturally expand the tax base.
He warned that poverty cannot be eliminated through taxation alone but through increased production and enterprise.
He also raised concerns over what he described as an unprecedented tax fraud controversy, alleging that a tax law was forged for the first time in Nigeria’s history.
Obi said the National Assembly had admitted that the version of the law gazetted differed from what was passed, yet Nigerians were still being subjected to higher taxes under the disputed framework.
He wrote partly, “There is no virtue in celebrating increased government revenue while the people grow poorer. Taxing poverty does not create wealth; it deepens hardship. Any tax system that makes citizens poorer violates the fundamental principles of good governance and sound fiscal policy.
“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. -PO”
Credit: Nigerian Tribune