The 2023 Labour Party presidential candidate, Peter Obi, has issued a strong warning to the Federal Government, calling for an immediate suspension of Nigeria’s newly gazetted tax laws over what he described as serious, damaging errors that could cripple businesses and overwhelm taxpayers.
Obi made the call in a statement shared on X (formerly Twitter) on Tuesday, citing an independent report by KPMG Nigeria which uncovered 31 critical flaws in the tax regulations.
“Experts Are Confused — What About Ordinary Nigerians?”
According to Obi, the KPMG report highlighted major problem areas, including:
- Taxation of shares
- Treatment of dividends
- Obligations placed on non-resident entities
- Foreign exchange deductions
- Policy contradictions and drafting errors
- Administrative gaps that could trigger widespread confusion
He revealed that the issues were so complex that private, closed-door meetings had to be held between KPMG and the National Revenue Service just to interpret the laws.
“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 asked.
“Taxation Is a Social Contract, Not an Ambush”
Obi stressed that taxation should be built on trust, transparency, and public participation, not sudden enforcement.
He criticised the government for failing to engage stakeholders before finalising the laws, noting that in functional economies, tax reforms usually take months or even years of consultations with:
- Businesses
- Workers
- Civil society groups
- Professional bodies
“Typically, extensive consultations are held before tax laws are introduced, with the implications clearly explained. In Nigeria, none of this happened,” he said.
According to Obi, the absence of public engagement has left ordinary Nigerians in the dark about both their tax obligations and the benefits they are supposed to receive in return.
Growing Pressure on the Federal Government
With 31 major flaws now publicly exposed, Obi warned that rushing implementation could:
- Hurt small and medium-sized businesses
- Discourage investment
- Increase tax disputes and non-compliance
- Deepen public distrust in government policy
He urged the Federal Government to pause the rollout, fix the gaps, and reopen the process with full transparency and stakeholder input.
Spotlight Now on FG
Obi’s intervention has intensified pressure on the government to review the tax laws before they take effect.
As Nigerians react online, many are asking the same question Obi raised:
If experts are struggling to understand the laws, how are everyday taxpayers expected to survive them?
The ball is now firmly in the Federal Government’s court.
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