Peter Obi Urges FG to Suspend New Tax Law, Cites 31 Flaws Identified by KPMG

Peter Obi Urges FG to Suspend New Tax Law, Cites 31 Flaws Identified by KPMG

The 2023 Labour Party presidential candidate, Peter Obi, has called on the Federal Government to immediately suspend the enforcement of the controversial new tax law, warning that the policy is riddled with inconsistencies and lacks public trust.

In a statement issued on Tuesday, January 13, the former Anambra State governor said it had become clear that Nigeria’s tax framework had been fundamentally altered, citing a KPMG report which reportedly identified 31 critical problem areas in the new tax laws. These issues, he said, range from drafting errors to policy contradictions and administrative gaps.

According to Obi, the findings alone should compel a responsible government to halt implementation without delay. He expressed concern that such serious flaws only became evident after private engagements between the National Revenue Service and KPMG.

“If experts need closed-door discussions to make sense of our tax laws, what hope does the average Nigerian have of understanding the obligations being imposed on them?” Obi asked.

He stressed that taxation is not merely a fiscal tool but a social contract between government and citizens, arguing that such a contract cannot be enforced if it is neither understood nor trusted.

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Obi explained that globally, tax policies are justified through visible public benefits such as quality healthcare, education, job creation, infrastructure development, and social safety nets. According to him, these benefits define the essence of a functional social contract.

“In Nigeria, the emphasis seems to be on how much more the government can extract, rather than what it intends to give back. A tax system without visible public benefits is not reform; it is extortion,” he said.

The former governor also criticised the absence of broad consultations, noting that in many countries, tax reforms undergo months or even years of engagement with businesses, workers and civil society before implementation. Such processes, he said, help citizens understand not only what they must pay but also what they stand to gain.

He lamented that no such consultations took place in Nigeria, leaving citizens confused about the new tax regime and the benefits attached to it.

Obi further argued that the government had rushed into enforcement without building consensus or offering clear explanations, even as Nigerians continue to grapple with the effects of fuel subsidy removal, rising food prices, high transport costs, declining purchasing power and worsening poverty.

“Instead of addressing these hardships, Nigerians are being subjected to a sweeping new tax regime already flagged with 31 major concerns by a leading global accounting firm. This is not responsible governance,” he said.

He warned that taxation without trust feels like punishment, without clarity breeds confusion, and without visible public value amounts to robbery.

Obi concluded by urging the government to halt further implementation of the tax law, insisting that Nigeria cannot afford to impose additional burdens on struggling citizens. He called for a government that listens, communicates clearly and builds national consensus as the pathway to genuine reform, unity, growth and shared prosperity.

Peter Obi Urges FG to Suspend New Tax Law, Cites 31 Flaws Identified by KPMG