The 2023 presidential candidate of the Labour Party (LP), Mr. Peter Obi, has expressed dissatisfaction with the new tax regime, asserting that without the trust of citizens, taxation is equivalent to robbery.
Obi alleged that the tax laws have been fundamentally altered and highlighted errors outlined by global professional services firm, KPMG, including drafting errors, glaring policy contradictions, and administrative gaps.
“This revelation should prompt every responsible government to take immediate action,” he said. “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.”
He lamented that if experts require closed-door discussions to navigate the complexities of the tax laws, the average Nigerian stands little chance of comprehending the obligations being imposed on them.
According to him, taxation transcends mere fiscal policy; it represents a social contract between the government and its citizens.
Obi argued that the government cannot enforce a social contract that is neither understood nor trusted, stressing that globally, tax policies are justified by delivering tangible benefits to citizens, including improved healthcare, better educational systems, job opportunities, infrastructure development, and social safety nets.
“This is what the social contract signifies,” he stated, adding that in Nigeria, the narrative focuses on how much more the government seeks to extract rather than what it is prepared to offer in return.
The former Anambra State governor noted that a tax system devoid of clear public benefits is not reform but extortion.
“Typically, months, if not years, are dedicated to consulting with businesses, workers, and civil society before tax drafts are presented for public discussion, with the ramifications clearly explained. 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. We have hastily pursued collection without securing a consensus and imposed enforcement without providing adequate explanations.”
He also decried that even after the removal of subsidies, Nigerians remain in limbo, waiting for tangible benefits or relief, but are instead grappling with skyrocketing food prices, exorbitant transport costs, dwindling purchasing power, and escalating poverty levels.
“Before we have even begun to address these issues, we are being thrust into an expansive new tax regime, riddled with inconsistencies and producing 31 alarming red flags from a leading global accounting firm. This is not the hallmark of responsible governance.
“Without trust, taxation feels like punishment. Without clarity, it breeds confusion. Without evident public value, it amounts to robbery.”
Obi emphasised that Nigeria cannot afford to place further burdens on its already struggling citizens, noting that what citizens need is a government that listens, communicates effectively, and prioritises building national consensus.
This, he added, is the only viable path to genuine reform, unity, growth, and shared prosperity.
