Former Labour Party (LP) presidential candidate, Peter Obi, has criticised Nigeria’s current fiscal direction, warning that taxing citizens amid rising poverty while spending heavily on luxury governance will not deliver economic growth.
Obi made the remarks while reacting to recent tax policies, stressing that no nation can grow wealthy by making its people poorer. He argued that sound economic management should prioritise improving citizens’ living standards rather than celebrating increased government revenue.
“There is no virtue in celebrating higher government income when the people are sinking deeper into poverty,” Obi said. “You cannot tax poverty into prosperity.”
The former Anambra State governor maintained that taxation must be transparent, fair, and tied to visible public benefits, adding that governments lose moral authority when citizens are asked to make sacrifices without corresponding restraint from those in power.
Recall that NN News Media reports that President Bola Ahmed Tinubu recently acquired a new presidential jet, a development that has generated widespread public debate amid Nigeria’s current economic hardship.
In August 2024, the Presidency officially unveiled a new Airbus A330 aircraft for presidential use, replacing the aging Boeing 737-700 Business Jet in the Presidential Air Fleet. Presidential aides explained that the aircraft was acquired to improve safety and reduce long-term maintenance and operational costs .
However, the purchase drew criticism from many Nigerians and civil society groups, who questioned the timing of such an acquisition while citizens grapple with rising taxes, inflation, subsidy removal, and declining purchasing power. Reports estimated the cost of the aircraft at about $100 million, though the Federal Government did not immediately disclose the full financial details .
Obi also emphasised that economic recovery should be driven by productivity rather than excessive taxation, noting that empowering small and medium-sized enterprises (SMEs) would naturally expand the tax base through job creation and higher incomes.
“You cannot tax your way out of poverty; you must produce your way out of it,” he stated, calling for policies that support businesses, protect the vulnerable, and restore trust between the government and the people.
He concluded by urging the Federal Government to adopt a people-centred tax system that promotes fairness, transparency, and shared prosperity, warning that policies perceived as burdensome and unjust risk deepening public discontent rather than strengthening national unity.
