Sounds like you're reading a PDF and you can't increase the font for those. It's a limitation of the format not the firmware.*
In case you're actually not reading a PDF, just struggling with the menus (happens to the best of us) see attached for a couple of screenshots that may help. The first is what you should see when you tap the centre of the screen.
The last one is what happens with a PDF. Note the "compass" zoom in icon instead of "Aa" font one.
(*actually it may theoretically be possible with some types of PDF but I've never heard of an ereader or app that supports it)
Update: davidfor beat me to it.
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