Former Labour Party presidential candidate, Mr. Peter Obi, has warned that Nigeria cannot achieve prosperity by placing heavier tax burdens on a population already grappling with poverty, stressing that honest leadership and people-centred policies are the foundation of sustainable national development.

In a strongly worded statement titled “Prosperity Cannot Come by Taxing Poverty,” Obi said his interactions with global leaders who have successfully transformed their nations reveal one consistent lesson: lasting progress begins with national consensus built on honesty and transparency.

According to him, transformative leaders do not exploit their citizens to enrich a privileged few but instead build trust, unity, and shared purpose. “Government must be transparent and truthful because citizens deserve nothing less from those who lead them,” he stated.

Obi criticised Nigeria’s current approach to taxation, arguing that if taxation is to serve as a genuine social contract, it must be rooted in fairness, sincerity, and concern for the welfare of the people. He maintained that every tax policy should be clearly explained, including its impact on citizens’ incomes and how it will contribute to national development.

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

He noted that Nigerians are increasingly asked to pay taxes without clarity, explanation, or visible benefits, a situation he described as counterproductive to economic growth, national unity, and shared prosperity.

Highlighting the way forward, Obi emphasised the need to empower small and medium-sized enterprises (SMEs) across communities, noting that when small businesses thrive, jobs are created, incomes rise, and the tax base expands naturally. “You cannot tax your way out of poverty; you must produce your way out of it,” he said.

Obi also expressed deep concern over what he described as an alarming tax fraud controversy, alleging that for the first time in Nigeria’s history, a tax law was reportedly forged. He pointed out that the National Assembly has acknowledged that the version of the law gazetted was not the one passed, yet citizens are being compelled to pay higher taxes under what he called a manipulated framework.

“There is no virtue in celebrating increased government revenue while the people grow poorer,” Obi said, adding that taxing poverty does not create wealth but instead deepens hardship.

He concluded by calling for a fair, lawful, and people-centred tax system—one that supports production, rewards enterprise, protects the vulnerable, and restores trust between government and citizens.

“Only then,” Obi said, “can taxation become a true tool for unity, growth, and shared prosperity.”