The Ameh News Editorial: Prosperity Must Precede Taxation – Lessons from Governor Otti on Tinubu’s Tax Reforms

Abia State Governor Alex Otti’s recent statement that “government must create prosperity before collecting taxes” is more than a political remark—it is a reflection of economic reality. Taxation, in a fragile economy, cannot succeed in a vacuum. It requires citizens and businesses to have the means to participate without feeling overburdened. To extract more from Nigerians, there must first be value creation—jobs, business growth, disposable income, and confidence in government.

President Tinubu’s reforms, which are expected to include digital taxation, adjustments to Value Added Tax (VAT), and stricter enforcement, are ambitious. And yet, ambition must be tempered with pragmatism. History offers lessons: nations that focus on wealth creation before heavy taxation enjoy higher compliance and stronger investor confidence. Conversely, introducing aggressive taxes in a struggling economy risks resistance, tax evasion, and slowed economic activity.

Economists and tax experts agree. Celestine ukpong notes that coupling tax reforms with policies that stimulate business and income generation is critical. Fatima Bello reminds us that Nigeria’s large informal economy complicates compliance, and Kunle Adeyemi emphasizes the need for a phased, measured approach. These insights echo Governor Otti’s caution: without prosperity, taxes are not just revenue, they are burdens.

As Nigerians await the implementation of these reforms, the debate sparked by Governor Otti should not be ignored. It is a call to policymakers to ensure that fiscal policy aligns with the realities on the ground: that wealth creation, job opportunities, and economic empowerment must come before heavier tax burdens.

At The Ameh News, we believe that sustainable development and fiscal policy must go hand in hand. Taxes are the lifeblood of governance, but prosperity is the soil from which compliance grows. Nigeria’s next chapter in tax reform should be one that nurtures both, not one that sacrifices citizens at the altar of revenue collection.

Governor Alex Otti warns that Nigeria must create prosperity before enforcing new tax reforms under President Tinubu. The Ameh News editorial reflects on the balance between taxation and economic growth.