JUST IN: Peter Obi Urges FG to Suspend New Tax Laws, Flags ‘31 Critical Errors’

The 2023 Labour Party presidential candidate, Peter Obi, has urged the Federal Government to suspend the rollout of Nigeria’s newly gazetted tax laws, warning that the framework contains significant mistakes, contradictions, and loopholes.

In a statement shared on his X (formerly Twitter) handle on Tuesday, Obi cited an analysis by KPMG Nigeria, which identified possible concerns around the taxation of shares, dividend handling, obligations of non-residents, and foreign exchange deductions.

Obi, the report identified “31 critical problem areas, from drafting errors to glaring policy contradictions and administrative gaps,” noting that the complexity of the issues was such 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?”

Obi maintained that taxation should function as a social contract between citizens and the state and criticised the absence of broad public engagement before the laws were finalised.

“Typically, months, if not years, are dedicated to consulting with businesses, workers, and civil society before tax drafts are presented for public discussion, with the ramifications clearly explained.

“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.”

Peter Obi also faulted the government’s implementation strategy, stating, “We have hastily pursued collection without securing a consensus and imposed 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 further described the tax framework as “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. This is the only viable path to genuine reform, unity, growth, and shared prosperity,” Obi concluded.

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