Former Anambra State Governor and 2023 presidential candidate, Peter Obi, has criticised Nigeria’s approach to revenue generation, warning that imposing heavier tax burdens on poor and struggling citizens risks undermining economic growth, social trust and national cohesion.
In a statement shared on his X handle on Thursday, Obi said national prosperity cannot be achieved by “taxing poverty,” arguing that taxation should function as a transparent social contract anchored on fairness, accountability and visible public benefit.
“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,” Obi said.
He stressed that governments must be honest with citizens about how tax policies affect incomes and clearly demonstrate how revenues translate into tangible development outcomes.
Obi argued that taxation should not be narrowly focused on increasing government revenue but on creating conditions that make citizens wealthier through production, enterprise and job creation.
“Nigeria must rethink taxation if it is serious about economic growth, national unity and shared prosperity. 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,” he said.
He added that Nigerians were being asked to pay more taxes without sufficient clarity, explanation or visible benefits, warning that such an approach erodes public trust.
According to Obi, empowering small and medium-sized enterprises remains the most sustainable way to expand the tax base, rather than placing additional pressure on households already burdened by rising living costs.
“You cannot tax your way out of poverty — you must produce your way out of it,” he said.
His comments come amid heightened public debate over Nigeria’s tax reforms and revenue measures, as the Federal Government intensifies efforts to boost non-oil revenue in response to rising debt servicing costs, a weak naira and the removal of fuel subsidies.
The debate has been further fuelled by controversy surrounding recently amended tax laws, after the National Assembly acknowledged discrepancies between the versions passed by lawmakers and those later gazetted.
Obi described the episode as alarming and unprecedented, noting that citizens were being asked to comply with higher tax obligations under a framework whose legitimacy had been questioned.
“There is no virtue in celebrating increased government revenue while the people grow poorer,” he said. “Any tax system that impoverishes citizens violates the fundamental principles of good governance and sound fiscal policy.”
Nigeria’s tax-to-GDP ratio remains among the lowest globally, estimated at below 10 per cent, according to official figures.
Successive administrations have argued that improving tax collection is critical to funding infrastructure, healthcare and education, even as public concerns over fairness and implementation persist.