Taxing poverty won’t bring prosperity, says Peter Obi

Obi

Former Labour Party presidential candidate, Peter Obi, has criticised Nigeria’s current tax policies, warning that prosperity cannot be achieved by placing heavier burdens on the poor.

In a statement shared on his X handle on Friday, Obi said “prosperity cannot come by taxing poverty,” adding that countries that have achieved lasting economic and social development did so through honest leadership, national consensus and people-focused policies.

Obi said, “If taxation is to function as a genuine social contract, it must be rooted in sincerity, fairness, and concern for the welfare of the people.

“Every tax policy should be clearly explained, including its impact on incomes and its expected contribution to national development.

“Without this transparency, taxation becomes a tool of confusion and burden rather than a mechanism for growth and development.”

He argued that Nigeria must rethink its approach to taxation if it is serious about economic growth, national unity and shared prosperity, adding that the purpose of fiscal policy should be to make citizens wealthier rather than merely increasing government revenue.

The former Anambra State governor stressed that empowering small and medium-sized enterprises remained the key to sustainable growth, noting that when small businesses thrive, jobs are created, incomes rise, and the tax base expands naturally. Punch