James Adamu in Abuja
Peter Obi, the presidential candidate of the Labour Party in the 2023 elections, has condemned the Bola Tinubu administration’s fiscal strategy, declaring that Nigeria’s tax system must function as a genuine social contract with citizens, not an oppressive burden.
Obi in a statement published on his verified social media handles, challenged the government’s reliance on increased taxation amid economic hardship.
Obi anchored his argument in the principles of transformative leadership observed globally. He stated that honest and transparent governance, which builds public trust and unity, is the non-negotiable foundation for national progress.
“True leaders do not exploit their people to enrich themselves and a few cronies,” he asserted, framing his subsequent critique of current policies within this context of a perceived leadership deficit.
Directly addressing the government’s revenue drive, Obi argued that for taxation to be legitimate, it requires clarity, fairness, and a demonstrable concern for public welfare.
“Every tax policy should be clearly explained, including its impact on incomes and its expected contribution to national development,” he insisted. He warned that without this transparency, the system becomes one of “confusion and burden,” eroding the essential covenant between state and citizen.
He contended that the primary goal of fiscal policy should be to enrich the citizenry, thereby naturally expanding the tax base, rather than squeezing revenue from existing poverty. “You cannot tax your way out of poverty – you must produce your way out of it,” he proclaimed, advocating for a fundamental shift towards empowering small businesses and boosting production as the real engine for sustainable growth and revenue.
Obi’s statement took a more grave tone as he referenced the alleged forgery of the recent VAT Act, a scandal confirmed by the National Assembly. He labelled the situation “particularly alarming,” arguing that demanding higher payments under a “manipulated framework” completely shatters any notion of a fair social contract. This, he suggested, symbolised a broader breakdown in governance integrity.
Concluding with a stark juxtaposition, Obi dismissed any celebration of rising government revenue alongside deepening public poverty. “Taxing poverty does not create wealth; it deepens hardship,” he said.
He called for an urgent overhaul to create a “fair, lawful, and people-centred tax system” that incentivises production, protects the vulnerable, and ultimately restores the broken trust between the Nigerian people and their government.
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