Prosperity Cannot Come from Taxing Poverty - Obi

Prosperity Cannot Come from Taxing Poverty - Obi

Former Governor of Anambra State and Labour Party presidential candidate, Peter Obi, has warned that Nigeria cannot achieve sustainable prosperity by imposing heavier taxes on an already impoverished population, stressing that honest leadership, transparency, and productive economic policies are the true foundations of national progress.

In a statement reflecting on his interactions with global leaders who have successfully transformed their countries, Obi noted that lasting economic and social development begins with national consensus built on honesty and trust. According to him, transformative leaders are defined by transparency and a commitment to the welfare of their people, not by policies that enrich a few at the expense of the majority.

He argued that Nigeria’s current approach to taxation falls short of these standards. Obi maintained that taxation, if it is to serve as a genuine social contract, must be fair, clearly explained, and visibly beneficial to citizens. Without openness about how taxes affect incomes and contribute to development, he said, taxation becomes a burden rather than a tool for growth.

Obi called on the government to rethink its tax policies if it is serious about economic growth, national unity, and shared prosperity. He emphasized that the goal of sound fiscal policy is not simply to raise revenue, but to make citizens wealthier, thereby strengthening the nation as a whole.

“The real solution lies in empowering small and medium-sized enterprises across communities,” Obi stated, noting that thriving small businesses create jobs, raise incomes, and naturally expand the tax base. “You cannot tax your way out of poverty; you must produce your way out of it.”

He expressed deep concern over what he described as an ongoing tax fraud controversy, alleging that for the first time in Nigeria’s history, a tax law may have been forged. Obi pointed out that the National Assembly has reportedly acknowledged that the version of the law gazetted was not the one actually passed, yet Nigerians are being asked to pay higher taxes under this disputed framework.

According to him, celebrating increased government revenue while citizens become poorer is misguided. “Taxing poverty does not create wealth; it only deepens hardship,” he said, adding that any tax system that impoverishes the people violates the core principles of good governance and sound fiscal management.

Obi concluded by calling for 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 through such an approach, he said, can taxation truly become a tool for unity, growth, and shared prosperity in Nigeria.