By Ayo Ayodele
Former Anambra State Governor and Labour Party presidential candidate, Mr. Peter Obi, has warned that Nigeria cannot achieve prosperity by placing heavier tax burdens on an already impoverished population, insisting that economic growth must be driven by production, transparency, and trust between government and citizens.
In a statement titled “Prosperity cannot come by taxing poverty,” Obi said his interactions with world leaders who successfully transformed their countries revealed a common principle: national progress begins with consensus, honesty, and transparent leadership. According to him, governments must be truthful with their citizens and avoid exploiting public office for personal or elite gain.
Obi argued that Nigeria’s current taxation approach falls short of these standards, stressing that taxation should function as a social contract grounded in fairness and clarity. He said tax policies must be clearly explained to citizens, including their impact on incomes and how the revenue will contribute to national development.
“Without transparency, taxation becomes a tool of confusion and burden rather than a mechanism for growth,” he said, adding that Nigerians are increasingly being asked to pay higher taxes without visible benefits or proper explanation.
The former governor emphasized that the primary goal of fiscal policy should not merely be revenue generation but improving citizens’ welfare. He noted that a stronger nation emerges when people are made wealthier, not poorer.
Obi identified the empowerment of small and medium-sized enterprises (SMEs) as the foundation for sustainable economic growth, arguing that when small businesses thrive, jobs are created, incomes rise, and the tax base expands naturally. “You cannot tax your way out of poverty; you must produce your way out of it,” he stated.
He also expressed deep concern over what he described as an unprecedented tax fraud saga, alleging that a tax law currently being enforced was forged. Obi noted that the National Assembly has reportedly acknowledged that the version of the law gazetted differs from what was actually passed, yet citizens are still being compelled to pay higher taxes under the disputed framework.
“There is no virtue in celebrating increased government revenue while the people grow poorer,” Obi said, warning that taxing poverty only deepens hardship and violates the principles of good governance.
He called for a fair, lawful, and people-centred tax system that supports production, rewards enterprise, protects the vulnerable, and restores public trust, noting that only such an approach can make taxation a true tool for unity, growth, and shared prosperity in Nigeria.