WHY THIS DANGEROUS TAX LAW MUST BE PAUSED BEFORE IT BREAKS PUBLIC TRUST — OBI

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By Micah Jonah
January 14, 2026

Former Anambra State Governor and Labour Party presidential candidate, Peter Obi, has called for an immediate pause on Nigeria’s controversial tax law, warning that the process and substance of the reforms raise serious concerns about governance, trust and economic justice.

According to him, it is now undeniable that the tax laws have been fundamentally altered, with global accounting firm KPMG reportedly identifying 31 critical problem areas, ranging from drafting errors and policy contradictions to major administrative gaps. He argued that this alone should compel any responsible government to halt implementation, undertake a thorough review.

Obi expressed concern that such significant flaws only came to light after private engagements between the National Revenue Service and KPMG. He questioned how ordinary Nigerians are expected to understand and comply with complex tax obligations if experts themselves require closed door meetings to interpret the laws.

He stressed that taxation goes beyond fiscal policy and represents a social contract between the government and the people. Enforcing a tax system that is neither clearly understood nor trusted by citizens, he warned, undermines the very foundation of that contract.

Drawing comparisons with global best practices, Obi noted that taxes are typically justified by tangible public benefits such as quality healthcare, improved education, job creation, infrastructure development and functional social safety nets. In Nigeria’s case, he said the focus appears to be on how much more government can collect, rather than what it intends to deliver in return.

He criticized the absence of extensive public consultations before the tax laws were finalised, noting that in many countries, months or years are spent engaging businesses, workers and civil society to explain both the financial implications and the expected benefits. Such engagement, he said, is essential for building legitimacy and public buy in.

Obi further observed that Nigerians are still grappling with the harsh economic effects of subsidy removal, including rising food prices, high transport costs, declining purchasing power and worsening poverty. Introducing a wide ranging and flawed tax regime at such a time, he argued, places additional and unnecessary strain on already struggling citizens.

He warned that without trust, taxation feels like punishment, without clarity it creates confusion, and without visible public value it amounts to exploitation. Obi concluded by urging the government to listen, communicate clearly and prioritise national consensus, noting that this approach remains the only path to genuine reform, unity, growth and shared prosperity.

He added that a new Nigeria is not merely a possibility, but an imperative.

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