Peter Obi, the former Governor of Anambra State, has issued a stark warning that Nigeria risks deepening hardship and undermining national cohesion by pursuing a tax regime that places greater burdens on an already impoverished population. He emphasized that genuine prosperity cannot be achieved through policies that make citizens poorer, stressing that economic growth must be built on trust, honesty, and productivity. Obi made these critical remarks recently, addressing issues of taxation, leadership responsibility, and the weakening social contract between government and citizens.
Drawing from his extensive engagements with leaders across the globe, Obi highlighted a key lesson: countries that have achieved lasting transformation did so by uniting their people around a shared vision anchored on truth and transparency. He argued that leadership without honesty inevitably destroys consensus and weakens the very foundations of development, leading to a breakdown in trust.
Obi’s core message revolves around the principle that “prosperity will not come by taxing poverty.” He believes that the current approach in Nigeria is fundamentally flawed, focusing on extracting more from those who have little, rather than creating an environment where wealth can be generated and the tax base naturally expands.
He articulated that taxation should operate as a genuine social contract, grounded in sincerity, fairness, and a deep concern for citizens’ welfare. According to his analysis, every tax policy must be clearly explained, including its direct impact on individual incomes and its tangible contribution to national development and public benefit.
Featured snippet paragraph: What is the fundamental flaw in Nigeria’s current tax approach according to Peter Obi? Obi argues that the current tax regime deepens hardship by taxing poverty instead of fostering wealth creation. He states that genuine prosperity requires policies that make citizens wealthier, built on trust, honesty, and productivity, not policies that extract from the impoverished.
Obi’s analysis suggests that Nigeria’s fiscal challenge is not merely about raising revenue, but about empowering citizens to become wealthier, which in turn strengthens the nation. He pointed out that Nigerians are currently being asked to pay taxes without clarity, explanation, or visible public benefit, creating a sense of unfairness and burden.
He identified the empowerment of small and medium-sized enterprises as the crucial starting point for sustainable economic growth. Thriving small businesses, he explained, are the engines that create jobs, raise incomes, and consequently, naturally expand the tax base, leading to a healthier economy for all.
“You cannot tax your way out of poverty, you must produce your way out of it,” Obi stated emphatically, underscoring the need for a production-driven economic strategy over a consumption-tax-driven one.
The former governor also expressed alarm over what he described as an unprecedented tax fraud controversy. He alleged that a tax law currently in use was not the version that was originally passed by the National Assembly, a claim that has significant implications for governance and legality.
Reports indicate that the legislature itself has acknowledged discrepancies between what was approved and what was eventually gazetted, raising serious questions about the integrity of the legislative and executive processes concerning taxation.
Obi warned against the misguided celebration of increased government revenue when citizens are simultaneously growing poorer. He argued that such outcomes are not indicators of success, but rather reflect a profound failure of governance and economic management.
“Taxing poverty does not create wealth but entrenches hardship,” he reiterated, highlighting the counterproductive nature of the current fiscal policies.
He called for a fair, lawful, and people-centred tax system that actively supports production, rewards enterprise, protects the vulnerable, and crucially, restores trust between the government and its citizens.
Ultimately, Obi concluded that only such a holistic and ethical approach can transform taxation from a burden into a true instrument of national progress and shared prosperity.
