Obi warns against taxing poverty, says harsh policies threaten national cohesion

By James Ike

Former Anambra State Governor, Peter Obi, has cautioned that Nigeria risks worsening hardship and weakening national unity by pursuing a tax regime that places heavier burdens on an already impoverished population.

In a statement shared on his X (formerly Twitter) handle, Obi argued that genuine prosperity cannot be achieved through policies that make citizens poorer, insisting that sustainable economic growth must be built on trust, honesty and productivity.

The statement, personally signed by the former governor, focused on taxation, leadership responsibility and what he described as the erosion of the social contract between government and the people.

Drawing from his engagements with global leaders, Obi said countries that recorded lasting transformation did so by uniting their citizens around a shared vision rooted in truth.

He stressed that leadership devoid of honesty undermines 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,” he said.

Obi maintained that taxation should function as a genuine social contract anchored on sincerity, fairness and concern for citizens’ welfare.

He said every tax policy must be clearly explained, particularly its impact on incomes and how it contributes to national development.

“If taxation is to work as a true social contract, it must be rooted in sincerity, fairness and concern for the welfare of the people. Without transparency, taxation becomes a source of confusion and burden rather than a tool for growth and development,” he added.

The former governor argued that Nigeria’s fiscal challenge goes beyond revenue generation, noting that the real task is to make citizens wealthier so the nation itself can grow stronger.

He lamented that Nigerians are being asked to pay more taxes without clarity, explanation or visible public benefit.
According to him, sustainable growth must begin with the empowerment of small and medium-sized enterprises (SMEs), which he described as the backbone of job creation and income expansion.

“The solution begins with empowering small and medium-sized enterprises in every community. You cannot tax your way out of poverty; you must produce your way out of it,” Obi said.

He also raised concerns over what he described as an unprecedented tax fraud controversy, alleging that a tax law currently being implemented is not the version passed by the National Assembly.

Obi said reports suggest the legislature itself has acknowledged discrepancies between what was approved and what was eventually gazetted.

“For the first time in Nigeria’s history, a tax law has reportedly been forged. Yet citizens are being asked to pay higher taxes under this manipulated framework, without transparency, explanation or corresponding benefits,” he stated.

Obi warned against celebrating increased government revenue while citizens grow poorer, arguing that such outcomes signal governance failure rather than success.

“There is no virtue in celebrating increased government revenue while the people grow poorer. Any tax system that impoverishes citizens violates the basic principles of good governance and sound fiscal policy,” he said.

He 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, stressing that only such an approach can make taxation a true instrument for unity, growth and shared prosperity.