KEY POINTS

• Peter Obi urges the Federal Government to pause implementation of newly gazetted tax laws.
• A KPMG Nigeria report flags 31 critical issues including drafting errors and policy contradictions.
• Obi says the lack of public consultation undermines trust and compliance.

Peter Obi, a former presidential candidate, has asked the Federal Government to put off putting Nigeria’s new tax laws into effect. He says they have big mistakes and policy gaps that could hurt businesses and regular taxpayers.

Obi made the call in a statement on his X account on Tuesday. He said that KPMG Nigeria had raised concerns after looking over the laws.

He says that the problems found are more than just small technical problems; they show bigger problems with the country’s tax system.

KPMG Report Flags Multiple Concerns

Obi said that the review brought up issues with how shares are taxed, how dividends are treated, the duties of non-resident entities, and deductions related to foreign exchange. He was talking about the KPMG report. He said that the report found 31 major problem areas, including mistakes in writing, contradictory policies, and gaps in administration.

Obi said the situation was bad and that some of the problems weren’t even brought up until the National Revenue Service and KPMG met in private.

He asked how regular Nigerians and small businesses are supposed to understand their tax responsibilities when even experts need to talk behind closed doors to figure out what the laws mean.

Obi said that taxes should be based on a social contract between the government and its citizens that is based on trust, clarity, and involvement. He said that in a lot of countries, tax reforms require a lot of input from businesses, workers, and civil society groups before the final drafts are made.

He said that these kinds of talks help people understand not only what they are paying, but also why the taxes are needed and how the money will be spent.