FORMER Anambra State Governor, Mr Peter Obi, has told President Bola Tinubu that taxing poverty does not create wealth but deepens hardship, noting that there is no virtue in celebrating increased government revenue while the people grow poorer.

Mr Obi said this in reference to the tax laws, whose implementation began on January 1. There have been several controversies sorrounding the tax laws, with the lawmakers recently saying that what was discussed on the floor of the National Assembly wasn’t what was gazetted.

Mr Obi said on his X handle on Friday that as he travelled the world and met leaders who had transformed their nations, one lesson stood out clear: lasting economic and social progress began with national consensus.

“Transformative leaders—those who successfully unite their people around a shared vision—share a defining quality: honesty. Government must be transparent and truthful because citizens deserve nothing less from those who lead them,” he said.

The former Anambra State governor said true leaders would not exploit their people to enrich themselves and a few cronies, stating that they rather built trust, unity, and shared purpose – the foundation of sustainable progress.

“It is against this standard of honest leadership that Nigeria’s current approach to taxation must be measured. If taxation is to function as a genuine social contract, it must be rooted in sincerity, fairness, and concern for the welfare of the people,” he said.

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Mr Obi said every tax policy should be clearly explained, including its impact on incomes and its expected contribution to national development. He noted that without this transparency, taxation would become a tool of confusion and burden rather than a mechanism for growth and development.

“Nigeria must rethink taxation if it is serious about economic growth, national unity, and shared prosperity. The purpose of sound fiscal policy is not merely to raise revenue; it is to make the people wealthier so that the nation itself becomes stronger. Yet today, Nigerians are asked to pay taxes without clarity, explanation, or visible benefit.”

Mr Obi further argued that the solution to the nation’s challenges should begin with empowering small and medium-sized enterprises in every community. When small businesses thrive, he said, jobs would be created, incomes would rise and the tax base would expand naturally. “You cannot tax your way out of poverty – you must produce your way out of it.”

“This makes the ongoing tax fraud saga particularly alarming. For the first time in Nigeria’s history, a tax law has reportedly been forged. The National Assembly itself has admitted that the version gazetted is not what was passed into law. Yet citizens are being asked to pay higher taxes under this manipulated framework—without transparency, without explanation, and without corresponding benefits,” he said.

“Nigeria needs a fair, lawful, and people-centred tax system—one that supports production, rewards enterprise, protects the vulnerable, and restores trust between government and citizens. Only then can taxation become a true tool for unity, growth, and shared prosperity.”

Tax implementation begins

Despite controversies and misgivings, President Tinubu had insisted on January 1 take-off of the tax laws. He had described the reforms as a “once-in-a-generation opportunity to build a fair, competitive, and robust fiscal foundation for our country,” noting that they would improve the economy.

He had stressed that the new laws were not intended to impose higher tax burdens on citizens, but to support a structural reset, drive harmonisation, and protect dignity while strengthening the social contract.

The president had acknowledged the public debate triggered by reports of changes to some provisions of the legislation but said no issue raised so far justified halting or disrupting the reform process.

He said absolute trust was always built over time through making the right decisions, not through premature, reactive measures, noting that his administration remained fully committed to due process and the integrity of enacted laws.

Tinubu pledged continued cooperation with the National Assembly to address any genuine gaps or areas of concern that might emerge during implementation.