Former Labour Party presidential candidate, Peter Obi, has issued a stern warning against Nigeria's current taxation strategy, asserting that national prosperity cannot be achieved by imposing heavier tax burdens on an already impoverished populace. In a personally signed statement titled “Prosperity cannot come by taxing Poverty,” Obi emphasized that sustainable economic and social progress hinges on honest leadership, transparency, and a tax system that prioritizes citizens' welfare over mere revenue extraction.

Obi argued that successful nations are led by individuals who unite their people around a shared vision, with integrity being central to effective governance. He stated that transformative leaders embody honesty and transparency, as citizens deserve nothing less from those in power. He cautioned that leadership loses legitimacy when it exploits citizens for the benefit of a select few, stressing that true leaders build trust, unity, and shared purpose, which are the bedrock of sustainable progress. Obi underscored that Nigeria's taxation framework must be evaluated against these principles of honest leadership and citizen welfare.

The former Anambra State governor reiterated that taxation should function as a genuine social contract, founded on sincerity, fairness, and a deep concern for the well-being of the people. He called for clear explanations of tax policies and their associated benefits, warning that without transparency, taxation becomes a tool for confusion and burden rather than a mechanism for growth and development. Obi insisted that Nigeria must fundamentally rethink its approach to taxation if it is serious about achieving economic growth, national unity, and shared prosperity.

Criticizing what he described as a revenue-driven fiscal mindset that fails to improve citizens’ welfare, Obi highlighted that the true purpose of sound fiscal policy is not merely to raise revenue, but to empower people economically so that the nation itself grows stronger. He lamented that Nigerians are currently asked to pay more without clarity, explanation, or visible benefits.

Obi contended that economic recovery lies in increased production rather than excessive taxation. He proposed that the solution begins with empowering small and medium-sized enterprises (SMEs) in every community, explaining that when small businesses thrive, jobs are created, incomes rise, and the tax base expands naturally. His core message was clear: “You cannot tax your way out of poverty - you must produce your way out of it.”

Furthermore, Obi expressed profound concern over an alleged tax fraud controversy, which he described as particularly alarming. He noted reports that a tax law currently in use has been purportedly forged, with the National Assembly itself admitting that the version gazetted is not what was passed into law. Despite this, Nigerians are reportedly being compelled to pay higher taxes under this manipulated framework, devoid of transparency, explanation, or corresponding benefits.

He cautioned against celebrating rising government revenue amidst worsening living conditions, declaring that “There is no virtue in celebrating increased government revenue while the people grow poorer.” Obi concluded that taxing poverty does not create wealth; instead, it deepens hardship, and any tax regime that impoverishes citizens ultimately undermines good governance. He called for a fair, lawful, and people-centered tax system that supports production, rewards enterprise, protects the vulnerable, and restores trust between the government and its citizens.