THIS DAWN — Former Anambra State Governor and 2023 presidential candidate, Peter Obi, has called for an immediate pause on Nigeria’s controversial new tax law, citing fundamental flaws and a lack of transparency in its implementation.
Mr. Obi made the call in a press release titled “Why the Controversial tax law should be paused?”
Obi warned that the legislation, which has significantly altered the country’s fiscal framework, is riddled with inconsistencies and contradictions.
He pointed to findings by global accounting firm KPMG, which identified 31 critical problem areas ranging from drafting errors to glaring policy contradictions and administrative gaps.
“This revelation should prompt every responsible government to take immediate action,” Obi stated.
Concerns Over Transparency
Obi expressed alarm that these issues only came to light through private meetings between the National Revenue Service and KPMG.
He noted in the statement that it raises questions about transparency.
“If experts require closed-door discussions to navigate the complexities of our tax laws, what hope does the average Nigerian have of comprehending the obligations being imposed on them?” he asked.
Highlighting the broader implications, Obi stressed that taxation is not merely fiscal policy but a social contract between government and citizens.
“Globally, tax policies are justified by delivering tangible benefits to citizens: improved healthcare, better education, job opportunities, infrastructure, and social safety nets.
“In Nigeria, however, the narrative is about how much more the government seeks to extract, rather than what it is prepared to offer in return.
“A tax system devoid of clear public benefits isn’t reform; it is extortion,” he said.
Lack of Consultation
Obi criticized the absence of public engagement in drafting the law.
Unlike international best practices, where tax reforms undergo months or years of consultation with businesses, workers, and civil society, Nigerians were left uninformed about both the regulations and the supposed benefits.
“This is how legitimacy is cultivated. Yet, in Nigeria, we have seen no such consultations or discussions,” he noted.
The former governor underscored the hardship already facing Nigerians following subsidy removal, including:
- Skyrocketing food prices
- Exorbitant transport costs
- Dwindling purchasing power
- Rising poverty levels
“Instead of relief, citizens are being thrust into an expansive new tax regime riddled with inconsistencies.
“This is not the hallmark of responsible governance,” Obi said.
Call to Action
Obi urged the government to suspend the law and embark on a transparent review process.
He recommended:
- Immediate pause on implementation
- Independent review of the 31 red flags identified by KPMG
- Public consultation with businesses, civil society, and citizens
- Clear communication strategy to explain obligations and benefits
- Phased implementation tied to visible improvements in citizens’ welfare
Obi concluded with a strong appeal for consensus-driven governance.
He said: “Without trust, taxation feels like punishment. Without clarity, it breeds confusion.
“And without evident public value, it amounts to robbery.
“Nigeria cannot afford to place further burdens on its already struggling citizens.
“What we need is a government that listens, communicates effectively, and prioritises building national consensus.
“A New Nigeria is not just a possibility; it is an imperative,” he concluded.
