Peter Obi urges the Federal Government to suspend new tax law, citing 31 critical issues in KPMG report, warning citizens about confusion and risk.
Former Anambra State Governor and 2023 Labour Party presidential candidate, Peter Obi, has called on the Federal Government to immediately suspend the implementation of Nigeria’s controversial new tax law.
According to Obi, the law contains fundamental flaws that threaten to undermine trust between the government and its citizens.
In a detailed statement released on Tuesday, January 13, Peter Obi cited a report by global accounting firm KPMG, which identified 31 significant problem areas in the tax legislation.
These issues range from technical drafting errors and policy contradictions to administrative gaps that make compliance difficult for both individuals and businesses.
Obi stressed that such glaring deficiencies demand urgent government attention.
“If experts require private, closed-door meetings to interpret our tax laws, what hope does the average Nigerian have of understanding these obligations?” Obi asked, highlighting the complexity and opacity of the new tax system.
He argued that taxation is more than a fiscal tool—it is a social contract between the state and its citizens, one that cannot function if people neither understand nor trust it.
Obi emphasized that globally, tax reforms are justified through clear public benefits. These include improvements in healthcare, education, infrastructure, job creation, and social welfare programs.
In his view, this is the essence of a functioning social contract—citizens contribute taxes because they see tangible returns in their daily lives.
“In Nigeria, the focus appears to be on how much more the government can extract from citizens rather than what it is willing to provide in return,” Obi said.
“A tax system without visible public benefits is not reform; it is extortion.”
He further warned that unlike many countries where tax laws undergo months, or even years, of public consultation, no such dialogue occurred in Nigeria before the new law was introduced.
Businesses, workers, civil society groups, and ordinary citizens were not adequately informed about what they are required to pay or what benefits would accrue in exchange.
Obi described this as a missed opportunity to build consensus and legitimacy.
Obi also pointed out that the timing of the new tax law is deeply concerning. Nigerians are already struggling with the removal of subsidies, rising food and transportation costs, declining purchasing power, and growing poverty.
He argued that introducing a complex tax system in this environment—flagged with 31 critical concerns by KPMG—amounts to irresponsible governance.
According to Obi, enforcement without clear explanations not only confuses citizens but also risks eroding trust.
“Without trust, taxation feels like punishment. Without clarity, it breeds confusion. Without visible public value, it becomes robbery,” he said.
He emphasized that the government must provide clarity and transparency before demanding compliance, or risk facing widespread resistance and frustration from the populace.
The former governor also highlighted that effective tax policies are not only about revenue collection but about creating a government-citizen relationship built on accountability and mutual benefit.
Citizens are more likely to comply voluntarily when they can see the impact of their contributions in healthcare facilities, schools, roads, social safety nets, and employment opportunities.
Peter Obi warned that the current approach risks alienating citizens, undermining public confidence, and eroding social cohesion.
Obi urged the Federal Government to pause enforcement of the new tax law and engage in meaningful consultations with stakeholders, including tax experts, businesses, workers, and civil society organizations.
By doing so, the government could revise the legislation to address the 31 issues identified in the KPMG report and rebuild trust with citizens.
He concluded by reiterating that Nigeria cannot afford to place additional burdens on its already struggling population.
Instead, he called for a government that listens, communicates transparently, and prioritizes national consensus as the foundation for genuine reform, unity, and shared prosperity.
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