As Nigeria embraces its new tax reform in 2026, the Federal Government has been advised that poor Nigerians should be given tax reprieve because they have a low per capita income.
This advice came from an Abia politician and a US-trained Medical Doctor, Chief Dr. John K. Nwadinobi, at his country home in Amaogwugwu in the Umuahia North LGA.
He said, “When it comes to the issue of taxation, even though initially Nigerians were under-taxed, this was because the federal taxation applied to only federal civil servants.
“But the best thing to do is to spread the taxation scheme so that everybody pays a token, like Pay As You Earn (PAYE). Then, if you don’t earn, in other countries, the federal government reimburses people with low income or no income, a certain amount. But anybody who is productive has to pay something”.
Nwadinobi argued that the process through which the tax reform came into being should have been more thorough.
He said, “Excessive taxation on industrialists can make them withdraw job provisions. These people have already provided jobs, and are they being taxed because they establish a business that provides jobs to Nigerians? Something that the Federal Government could not do.”
He noted that in Nigeria, more than 200 bank branches have been earmarked for closure due to recapitalization demand.
He said, “Why do we need to shut down banks? If you shut down a bank, you have laid down workers across the nation. It will affect the economy of the workers and their children and their wives. It will affect the economy of the people that transport them to the bank.
“The lady that sells in the restaurant they eat during lunch, the landlord that gives them where to live will be affected. Recapitalization or whatever they call it, is giving a dog a bad name to kill it”.
Nwadinobi noted that viable companies are no longer functional in the country, stating, “I am not in support of shutting down any bank. Capitalize them instead of saying recapitalization, which is giving a dog a bad name to kill it and shut down banks”.
On the issue of Nigeria becoming a one party state, the PDP stakeholder said, “It is the job of every politician to make sure he survives to the next term. Politicians do everything they can to win the same election, and at least complete eight years tenure, like for the President or for the governor. So what APC is doing is not wrong.
“They are making every effort to have people cross carpet to their own party. So it is upon the people, the other political parties, to make sure they cross or they don’t cross. It is a personal decision.
“One-party state will never work in Nigeria. If it is tried, some people will not find favour in that one-party state. They will surely break away. So one-party state will be a political confusion.
Speaking about Abia State Nwadinobi said, “I would not say because I am not in Labour Party, then I am blinded by what is so glaring in other states. Governor Alex Otti is performing. Up from inauguration till date, two years, he has done wonderfully. And that is my submission”.
