Former National Leader of the Labour Party, Mr. Peter Obi, has called on the Federal Government to immediately suspend the implementation of the new tax laws because of the fundamental errors observed by the KPMG, a leading global accounting firm.
Obi in a statement on X on Tuesday, noted that the accounting firm pinpointed 31 critical problem areas, comprising drafting errors, glaring policy contradictions and administrative gaps.
This revelation, according to him, is enough for any responsible government to take immediate action and suspend the implementation of the laws.
“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,” he noted.
Obi wondered that if experts require closed-door discussions to navigate the complexities of tax laws, “what hope does the average Nigerian have of comprehending the obligations being imposed on them?”
He stated that taxation transcends mere fiscal policy, but represents a social contract between the government and its citizens.
“You cannot enforce a social contract that isn’t understood or trusted,” he added.
The former presidential candidate observed that tax policies, globally, are justified by delivering tangible benefits to citizens, which include “improved healthcare, better educational systems, job opportunities, infrastructure development, and social safety nets. This is what the social contract signifies.”
He regretted that in Nigeria, the narrative is all about how much more the government seeks to extract from the citizens, rather than what it is prepared to offer them in return.
“A tax system devoid of clear public benefits isn’t reform; it is, quite frankly, extortion,” he said.
Obi said in other climes, months, if not years, are dedicated by the government, consulting with businesses, workers, and civil society before tax drafts are presented for public discussion.
This, he added, including tell the people, not only about their financial contributions but also about the benefits that will ensue.
“This is how legitimacy is cultivated,” he stated, but regretted that 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.”
The former Anambra State governor stated that the Nigerian government hastily pursued tax collection without securing a consensus, and went ahead to impose enforcement without providing adequate explanations.
“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,” he stated.
Obi stated that without addressing the challenges of fuel subsidy removal, government decided to impose 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.”
According to him, the new tax laws are like punishment on Nigerians, and added that the lack of clarity about the laws, breed confusion.
“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.
“This is the only viable path to genuine reform, unity, growth, and shared prosperity,” he added.
