Suspend new tax law – Peter Obi tells Nigerian govt

The Labour Party (LP) presidential candidate in the 2023 election, Peter Obi, has told the Federal Government to suspend implementation of the newly gazetted tax laws.

Obi has cited serious errors, inconsistencies, and gaps that could affect businesses and taxpayers.

Writing on X on Tuesday, he 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.

“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.”