Former Anambra State governor and Labour Party’s 2023 presidential candidate, Peter Obi, has called on the Federal Government to suspend the implementation of the newly introduced tax law, citing fundamental defects and a widening trust gap between the state and citizens.

In a statement issued on Tuesday, Obi said recent revelations have confirmed that the tax framework was significantly altered without adequate public engagement, raising serious concerns about its credibility and enforceability.

He referenced a KPMG report which reportedly identified 31 critical problem areas in the law, including drafting lapses, policy inconsistencies and administrative shortcomings. According to Obi, such findings should compel any responsible government to pause enforcement and undertake a thorough review.

Obi expressed concern that the issues only came to light after private engagements between the National Revenue Service and KPMG, noting that if experts require closed-door explanations to interpret the law, ordinary Nigerians stand little chance of understanding their obligations.

He stressed that taxation is more than a revenue tool, describing it as a social contract that must be built on clarity, trust and mutual benefit.

“Globally, tax policies are justified by visible returns such as quality healthcare, education, jobs, infrastructure and social protection,” Obi said. “In Nigeria, the focus appears to be on how much more the government can collect, rather than what citizens stand to gain.”

He argued that a tax system lacking clearly defined public benefits cannot be regarded as reform, warning that enforcement without understanding would only deepen public resentment.

The former governor criticised the absence of broad consultations with businesses, workers and civil society before the finalisation of the tax law, noting that such engagements are standard practice in credible reform processes.

Obi also linked public frustration to the lingering effects of fuel subsidy removal, rising food prices, high transport costs, declining purchasing power and worsening poverty, adding that Nigerians are yet to see tangible relief.

“To introduce an expansive new tax regime amid these pressures, especially one flagged with multiple red alerts by a global accounting firm, is not responsible governance,” he said.

He warned that taxation without trust feels punitive, while lack of clarity breeds confusion, insisting that without demonstrable public value, taxation amounts to exploitation.

Obi urged the Federal Government to halt enforcement, engage Nigerians transparently and rebuild consensus, stressing that genuine reform, national unity and shared prosperity can only be achieved through inclusive governance.