Obi demands every MoU on tax be made transparent

By : Azeez Kareem

Date: 17 December 2025 1:36pm WAT

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The 2023 presidential flagbearer of the Labour Party (LP), Peter Obi

The 2023 presidential flagbearer of the Labour Party (LP), Peter Obi

Former Anambra State governor and Labour Party presidential candidate during the 2023 elections, Peter Obi has called on the Federal Government to make all Memoranda of Understanding (MoUs) relating to tax administration fully transparent.

In a statement shared on X, Obi reacted to reports of a tax cooperation MoU between Nigeria and a company in France, expressing concern that an agreement with direct implications for public revenue and data management appeared to have been concluded without full disclosure of its terms to Nigerians.

“It is therefore worrisome that an agreement of this significance appears to have been concluded without the full terms being made public, and without a clear effort to explain its objectives, scope, and expected outcomes to Nigerians” Obi said.

While he acknowledged that international cooperation is not inherently wrong, he stressed that agreements touching on taxation demand a higher level of openness due to their impact on citizens and institutions.

According to Obi, transparency is essential for building trust in Nigeria’s tax reform efforts.

He noted that Nigerians deserve to know the objectives, scope and expected outcomes of such agreements, particularly when they involve sensitive areas such as revenue systems and administrative capacity.

He said the absence of clear public communication fuels suspicion and undermines confidence in government policy.

Obi emphasised that he was not opposed to engaging foreign expertise, but argued that any such engagement must be clearly justified.

He questioned why external partnerships are prioritised without a transparent explanation of the specific gaps they are meant to address, why those gaps cannot be filled locally, and what measurable benefits Nigerians stand to gain.

He also pointed out that Nigeria has no shortage of tax professionals, advisory firms and internationally recognised consultancies already operating within the country. In his view, sustainable reform should focus on strengthening local institutions and expertise rather than relying excessively on external arrangements.

He said building capacity from within would deliver longer-term benefits and reduce dependency.

The comments come amid growing pressure on the Federal Government to improve revenue generation while easing the burden on citizens and businesses.

Nigeria has embarked on several tax-related reforms in recent years, including efforts to harmonise taxes, expand the tax base and improve compliance through digital systems. However, these reforms have often faced criticism over implementation, communication and their impact on small and medium-sized enterprises.

Obi linked his concerns to the broader economic situation, noting that more than half of Nigerians live in multidimensional poverty, youth unemployment remains high and many small businesses struggle under the weight of multiple taxes and levies.

He added that government borrowing has continued to rise without corresponding gains in productivity or living standards.

In such circumstances, he argued, policy focus should be on simplifying the tax system, closing revenue leakages, broadening the tax base in a fair manner and ensuring prudent use of public resources.

Any agreement or policy initiative that lacks transparency and clearly defined benefits, he warned, risks deepening public distrust in government.

Obi therefore urged the Federal Government to publish the full text of the tax cooperation MoU, clearly explain its rationale and spell out the mutual benefits, particularly what Nigeria stands to gain in practical terms.

He said leadership requires openness, accountability and a clear commitment to the interests of the Nigerian people.

“Leadership demands openness, accountability, and commitment to the interests of the Nigerian people. Decisions of this nature must always be guided by what best serves the nation” he said.

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