Peter Obi has claimed that the re-gazetted tax laws implemented by President Bola Tinubu’s administration are devoid of clear public benefits, saying the reforms are packaged to extort Nigerians.
In a statement on Tuesday titled “Why the controversial tax law should be paused,” Mr Obi accused Mr Tinubu of attempting to extort Nigerians, contrary to what is obtained in other contexts where tax policies are often leveraged to advance education, health, and other infrastructural projects.
“Globally, tax policies are justified by delivering tangible benefits to citizens: improved healthcare, better educational systems, job opportunities, infrastructure development, and social safety nets,” the politician stated.
“This is what the social contract signifies. In Nigeria, the narrative is all about how much more the government seeks to extract, rather than what it is prepared to offer in return. A tax system devoid of clear public benefits isn’t reform; it is, quite frankly, extortion.”
Despite widespread criticism, especially from stakeholders, the Tinubu-led administration continued with the implementation of the re-gazetted tax laws as scheduled, insisting the reforms were aimed at benefiting poor Nigerians.
Mr Obi, however, said the allegations of inconsistencies trailing the reforms should rather prompt the Tinubu-led administration to take immediate action.
“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. This revelation should prompt every responsible government to take immediate action.
“Even more alarming is the fact that it took private meetings between the National Revenue Service and KPMG for these serious issues to be acknowledged.
“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?” the ADC chieftain stated.
Stating that taxation transcends mere fiscal policy and represents a social contract between the government and its citizens, Mr Obi added, “You cannot enforce a social contract that isn’t understood or trusted.”
While noting that tax drafts ideally pass through months or years of rigorous consultations with stakeholders, the politician accused the Tinubu-led administration of failure to educate ordinary Nigerians on the benefits of the tax laws.
He stated, “People must be informed not only about their financial contributions but also about the benefits that will ensue. This is how legitimacy is cultivated.
“Yet, in Nigeria, we have seen no such public consultations or discussions regarding the final tax laws, leaving ordinary citizens completely in the dark about both the regulations and the benefits of the taxes they’re expected to pay.”
The former governor berated the government for hastily pursuing collection without securing a consensus and imposing enforcement measures without adequate explanation amid the challenges confronting Nigerians following the removal of subsidies.
He stressed the need for trust, not punishment, noting taxation without evident public value amounts to robbery.
“Nigeria cannot afford to place further burdens on its already struggling citizens. What we need is a government that listens, communicates effectively, and prioritises building national consensus. This is the only viable path to genuine reform, unity, growth, and shared prosperity,” Mr Obi advised
