Public distrust trailing tax reform, punishment to citizens — Peter Obi

One of Nigeria’s foremost opposition figure and presidential candidate on Labour Party in the 2023 general election, Peter Obi has stated that the tax reform which took effect from this month was being trailed with public distrust, warning that the manner with which it was introduced would worsen the plight of Nigerians.

Reacting to findings by global accounting firm KPMG, which identified 31 critical problem areas in the tax laws, including drafting errors, policy contradictions and administrative gaps, Obi said, the tax reform was nothing close to ameliorating the already economic burden citizens, but rather a punishment.

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The report of KPMG, he said, confirms his earlier fears, noting that there was a need for the Federal Government to pause and review the reforms.

In a statement he issued on Tuesday night, the former governor of Anambra State and an Economist expressed misgivings on the credibility of the tax reform framework and the uncomfortable manner in which it was introduced.
He said the draft error pointed out by a highly respected KPMG calls for concern, as it remained fundamentally defective administratively and in policy.

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“Even more alarming is the fact that it took private meetings between the National Revenue Service and KPMG for these serious issues to be acknowledged.

“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?

“Taxation transcends mere fiscal policy; it represents a social contract between the government and its citizens. You cannot enforce a social contract that isn’t understood or trusted.

“Globally, tax policies are justified by delivering tangible benefits to citizens: improved healthcare, better educational systems, job opportunities, infrastructure development, and social safety nets.

“In Nigeria, the narrative is all 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, quite frankly, extortion.
“Yet, in Nigeria, we have seen no such public consultations or discussions regarding the final tax laws, leaving ordinary citizens completely in the dark about both the regulations and the benefits of the taxes they’re expected to pay.

“Even after the removal of subsidies, Nigerians remain in limbo, waiting for tangible benefits or relief. Instead, they are grappling with skyrocketing food prices, exorbitant transport costs, dwindling purchasing power, and escalating poverty levels.

“Before we have even begun to address these issues, we are being thrust into an expansive new tax regime, riddled with inconsistencies and producing 31 alarming red flags from a leading global accounting firm. This is not the hallmark of responsible governance.

“Without trust, taxation feels like punishment. Without clarity, it breeds confusion. 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,” Obi said.

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