Federal Government’s Tax Reforms: Peter Obi Flags Issues in Fresh Statement
- Peter Obi has criticised Nigeria’s controversial tax laws, warning they could trigger disputes and deter investment
- As its implementation takes effect, a KPMG report recently revealed alleged flaws in Nigeria's new tax laws
- The Nigeria Revenue Service defended the tax reforms in response to KPMG’s concerns, insisting that the changes prioritise the best interests of Nigerians
Legit.ng journalist Ridwan Adeola Yusuf has over 9 years of experience covering public affairs and governance in Nigeria and Africa.
FCT, Abuja - Peter Obi, a chieftain of the African Democratic Congress (ADC), on Tuesday, January 13, insisted that the tax laws “have been fundamentally altered.”
Obi’s fresh comment comes a few days after KPMG warned that flaws and gaps in the federal government of Nigeria’s new tax laws could spark disputes, deter investment, and lead to capital flight.
Source: Twitter
Peter Obi says tax laws altered
The audit, tax, and advisory firm made this known in its recent report titled “Nigeria’s New Tax Laws: Inherent Errors, Inconsistencies, Gaps and Omissions.”
The report reviews key provisions of the Nigeria Tax Act (NTA), which took effect on Thursday, January 1, 2026, and highlights areas where ambiguity or policy misalignment could undermine the law’s objectives.
However, on January 10, the presidential fiscal policy and tax reforms committee pushed back against KPMG’s critique.
The committee said a significant proportion of the issues described as “errors,” “gaps,” or “omissions” by KPMG are either the firm’s own errors and invalid conclusions, or matters not properly understood by the firm.
Subsequently, on Monday, January 12, KPMG executives and Zaach Adedeji, chairman of the Nigeria Revenue Service (NRS), held a meeting.
The NRS said Adedeji hosted a "courtesy visit" from the delegation of the tax advisory firm.
NRS stated that the KPMG executives commended the chairman for his leadership and the timely implementation of the new tax laws, noting that “their initial apprehensions have been significantly allayed."
According to sources at the NRS, the firm’s executives came to seek clarity on specific provisions of the laws.
Additionally, the source said the delegation commended the NRS chairman for efficiently and promptly implementing the reforms.
Obi questions Nigeria’s tax system
Reacting to the KPMG-NRS meeting via a post on his verified X (formerly Twitter) page, Obi, the presidential candidate of the Labour Party (LP) in the 2023 election, asserted that KPMG’s revelation “should prompt every responsible government to take immediate action.”
The presidential hopeful’s statement partly reads:
“Even more alarming is the fact 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?
“Taxation transcends mere fiscal policy; it represents a social contract between the government and its citizens. You cannot enforce a social contract that isn’t understood or trusted.”
Source: Facebook
“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.”
Read more on Nigeria’s tax reforms:
- 2026 tax shake-up: Union Bank explains who pays nothing, who pays more as new laws take effect
- New tax law: State-by-state breakdown of VAT sharing formula
Tax reform: Atiku flays Tinubu
Legit.ng earlier reported that Atiku Abubakar, the presidential candidate of the Peoples Democratic Party (PDP) in the 2023 election, asserted that the "forgery" of President Tinubu's tax reform law is "an act of treason against the Nigerian people."
The former vice president made the claim in a statement he personally signed, which was shared on X (formerly Twitter) by his media team.
According to the presidential hopeful, "the illegal and unauthorised alterations made" to Nigeria's tax legislation after passage by the national assembly "represent a brazen act of treason against the Nigerian people and a direct assault on our constitutional democracy."
Source: Legit.ng
