Suspend new tax law implementation, Peter Obi urges FG

Former presidential candidate Peter Obi has urged the Federal Government to pause the implementation of Nigeria’s newly gazetted tax laws, citing serious errors, inconsistencies, and gaps that could affect businesses and taxpayers.

In a statement posted on his X (formerly Twitter) account on Tuesday, Obi referred to a report by KPMG Nigeria, which flagged potential issues including the taxation of shares, dividend treatment, non-resident obligations, and foreign exchange deductions.

He said the report highlighted “31 critical problem areas, from drafting errors to glaring policy contradictions and administrative gaps,” adding that the issues were so complex 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 argued that taxation represents a social contract between the government and citizens, and stressed the lack of public consultation:

“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.

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“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.”

He further criticised the government’s approach, saying, “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.”

Obi described the new tax regime 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.”

He concluded that “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.”

However, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, responded to the report by KPMG on Saturday, clarifying the policy intent behind the tax laws.

Oyedele insisted that “most issues highlighted by the firm were misunderstandings of policy objectives or disagreements with deliberate reform choices,” adding, “While some points raised by KPMG were useful, the bulk of the report mischaracterised the objectives and structure of the new tax framework.”