Peter Obi urges pause on Nigeria tax laws after KPMG flags errors and gaps, warning the rushed reforms could hurt businesses and ordinary taxpayers

Former presidential candidate Peter Obi on Tuesday called on the Federal Government to pause the implementation of Nigeria’s newly gazetted tax laws, warning that serious errors, inconsistencies and gaps could harm businesses and ordinary taxpayers.

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In a statement posted on his X account, Obi cited a report by KPMG Nigeria which identified what he described as 31 critical problem areas in the new tax regime, ranging from drafting errors to policy contradictions and administrative gaps.

Obi said the report raised concerns over issues such as the taxation of shares, dividend treatment, non-resident obligations and foreign exchange deductions, arguing that the complexity of the framework even challenged experts.

“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 said.

He argued that taxation represents a social contract between the state and citizens and criticised the lack of public consultation before the laws were finalised.

“Typically, months, if not years, are dedicated to consulting with businesses, workers and civil society before tax drafts are presented for public discussion,” he said, adding that Nigerians were left “completely in the dark” about both the rules and the benefits of the taxes they are expected to pay.

Obi said the government had focused on enforcement and revenue collection without building consensus or explaining the reforms, at a time when many Nigerians are already struggling with rising food prices, transport costs and falling purchasing power.

He described the new tax laws as “riddled with inconsistencies” and warned that without trust and clarity, taxation risks being seen as punishment rather than a civic duty.

“Nigeria cannot afford to place further burdens on its already struggling citizens,” he said, urging the government to listen, communicate more effectively and build national consensus around reforms.

However, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, pushed back against the KPMG report over the weekend, saying most of the issues raised reflected misunderstandings of policy intent or disagreements with deliberate reform choices.

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Oyedele said that while some of the points raised were useful, the bulk of the report mischaracterised the objectives and structure of the new tax framework.