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By Lizzy Chirkpi
Former presidential candidate Peter Obi has called for an immediate suspension of Nigeria’s controversial new tax law, warning that it contains serious flaws and could further worsen the economic hardship faced by millions of Nigerians.
Obi said growing concerns over the tax reforms can no longer be ignored, noting that global accounting firm KPMG has reportedly identified 31 critical red flags in the law. These range from drafting errors and policy contradictions to significant administrative and implementation gaps.
According to him, such findings should compel any responsible government to halt the law’s implementation and subject it to urgent review.
“It is deeply troubling that it took private meetings between the National Revenue Service and KPMG for these issues to come to light,” Obi said. “If experts need closed-door sessions to understand the tax laws, what chance does the average Nigerian have of knowing what is being demanded of them?”
He stressed that taxation is more than a tool for revenue generation, describing it as a social contract between the government and the people—one that must be transparent, fair, and anchored on trust.
“You cannot enforce a social contract that is neither understood nor trusted,” he warned.
Drawing comparisons with global best practices, Obi said successful tax systems are typically justified by visible public benefits such as quality healthcare, education, job creation, infrastructure, and social protection.
In contrast, he argued that Nigeria’s approach appears focused almost entirely on extracting more revenue, without clearly articulating what citizens stand to gain in return.
“A tax system without clear public value is not reform; it is extortion,” he said.
Obi also criticised the lack of broad-based consultations prior to the passage of the tax law. He observed that in many countries, governments spend months or even years engaging businesses, workers, and civil society groups to ensure citizens fully understand both their obligations and the benefits tied to new tax measures.
“In Nigeria, no such transparent consultations took place,” he said. “Ordinary citizens have been left in the dark confused about the rules and uncertain about the benefits of the taxes they are expected to pay.”
He lamented that the government has prioritised aggressive tax collection and enforcement without first building public consensus or offering adequate explanations.
This, he noted, comes at a time when Nigerians are still grappling with the effects of fuel subsidy removal, rising food prices, escalating transport costs, shrinking purchasing power, and deepening poverty.
“Even after subsidies were removed, Nigerians are still waiting for relief or tangible benefits,” Obi said. “Instead, life has become harder.”
According to him, introducing a sweeping new tax regime—one already flagged with dozens of inconsistencies—without first addressing these economic challenges reflects poor governance and misplaced priorities.
“Without trust, taxation feels like punishment. Without clarity, it breeds confusion. Without visible public value, it amounts to robbery,” Obi declared.
He urged the government to halt the implementation of the tax law, engage citizens meaningfully, communicate transparently, and work toward building national consensus. Obi maintained that such an approach remains the only sustainable path to genuine reform, unity, economic growth, and shared prosperity.