ENUGU, Nigeria (VOICE OF NAIJA)- Former Anambra State Governor and Labour Party presidential candidate in the 2023 election, Peter Obi, has criticised Nigeria’s revised tax laws, warning that both the process and substance of the reforms risk eroding public trust and worsening economic hardship for already overstretched citizens.
Obi raised the concern following findings by global accounting firm, KPMG, which reportedly identified 31 critical flaws in the tax laws, ranging from drafting errors and policy inconsistencies to administrative loopholes.
He said the revelations underscored the need for the Federal Government of Nigeria to immediately pause the implementation of the reforms, undertake a comprehensive review, and clearly communicate their implications to Nigerians.
The former governor made his position known in a statement issued on Tuesday night, where he questioned the credibility of the revised tax framework as well as the manner in which it was introduced.
“It is now undeniable that the tax laws have been fundamentally altered, and even a firm as esteemed as KPMG has identified 31 critical problem areas, including drafting errors, glaring policy contradictions, and administrative gaps,” Obi said.
He expressed concern that such serious issues were reportedly acknowledged only after private engagements between the National Revenue Service and KPMG, arguing that this raised questions about transparency.
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“Even more troubling is that it took closed-door meetings for these flaws to be recognised. If experts require private discussions to interpret our tax laws, what hope does the average Nigerian have of understanding the obligations being imposed on them?” he asked.
Obi described taxation as a social contract between government and citizens, insisting that such a contract cannot be enforced without trust and clarity.
“Taxation goes beyond fiscal policy; it is a social contract. You cannot enforce a contract that is neither understood nor trusted,” he stated.
Drawing comparisons with global best practices, Obi noted that tax systems elsewhere are justified by visible public benefits such as quality healthcare, education, infrastructure, job creation, and social safety nets.
“In Nigeria, the conversation is about how much more government intends to collect, rather than what it plans to deliver in return. A tax system without clear public value is not reform; it is extortion,” he said.
He further lamented the absence of public consultations on the revised tax laws, noting that many Nigerians remain unaware of both the regulations and the supposed benefits of the taxes they are expected to pay.
“Even after subsidy removal, Nigerians are still waiting for relief or tangible benefits. Instead, they are confronted with rising food prices, high transport costs, shrinking purchasing power, and deepening poverty,” Obi said.
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According to him, introducing an expansive tax regime amid such conditions, especially one flagged with 31 red alerts by a global accounting firm, falls short of responsible governance.
“Without trust, taxation feels like punishment. Without clarity, it breeds confusion. Without visible public value, it amounts to robbery,” he warned.
Obi urged the Federal Government to halt the reforms and adopt a more inclusive approach.
“Nigeria cannot afford to impose further burdens on its struggling citizens. What we need is leadership that listens, communicates clearly, and prioritises building national consensus,” he said.