By Bassey Udo
The implementation of the recently amended Nigeria tax Act 2025 has continued to attract criticisms from well meaning Nigerians who want it halted till further notice.
Apart from KPMG, a renowned global firm of professional providing audit, tax and advisory services, prominent Nigerians, including the former presidential candidate of the Labour Party in the 2023 elections, Peter Obi, have joined in the demand for the government to halt the implementation of the tax law.
KPMG has earlier highlighted at least 31 critical flaws, ranging from drafting errors to glaring policy contradictions and administrative gaps, that have necessitated the call for the suspension of the implementation of the law.
But in a detailed post on his verified X handle on Tuesday, Obi said with the flaws highlighted in the law by KPMG, there was no denying the fact that the tax laws have been fundamentally altered, and should prompt a responsible government to take immediate steps to halt its implementation.
Obi expressed concern over alleged lack of transparency in the review process, adding that the fact that it took private meetings between the National Revenue Service (NRS) and KPMG to acknowledge the serious flaws speaks a lot about the integrity of the law.
“If experts require closed-door discussions to navigate the complexities of the new tax laws, what hope does the average Nigerian have of comprehending the obligations being imposed on them by the government?” he asked.
Framed taxation, Obi said, was a social contract between the government and citizens, adding that :taxation transcends mere fiscal policies, representing a social contract between the government and its citizens.
“One cannot enforce a social contract that isn’t understood or trusted,” he said.
He criticised the new law for focusing on revenue extraction rather than citizen benefits, adding that globally, tax policies are justified by delivering tangible benefits to citizens: improved healthcare, better educational systems, job opportunities, infrastructure development, and social safety nets.
“This is what the social contract signifies. In Nigeria, the narrative is all about how much more the government seeks to extract, rather than what it is prepared to offer in return. A tax system devoid of clear public benefits isn’t reform; it is, quite frankly, extortion.”
On the issue of absence of public consultation, Obi pointed: “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.
“People must be informed not only about their financial contributions but also about the benefits that will ensue. This is how legitimacy is cultivated.
“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 condemned the government’s rush to implement new measures, saying this has 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 warned that the new tax regime could deepen public frustration, adding that: “Before we have even begun to address these issues, we are being thrust into an expansive new tax regime, 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 called for a consultative approach to the issues: “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. A New Nigeria is not just a possibility; it is an imperative.”
