Former Vice President Atiku Abubakar has criticized the Federal Government’s proposed plan to increase the Value Added Tax (VAT), warning that it would worsen the ongoing cost-of-living crisis and further strain Nigeria’s fragile economic growth.
In a statement posted on his X handle on Sunday, Atiku expressed deep concern over the policy, stating that it could become a “blazing inferno that will consume the very essence of our people.”
He highlighted that the proposed VAT hike follows closely after the Nigerian National Petroleum Corporation Limited’s recent increase in the pump price of Premium Motor Spirit (fuel), exacerbating the financial hardships faced by Nigerians.
“destined to deepen the domestic cost-of-living crisis and exacerbate Nigeria’s already fragile economic growth.”
The Peoples Democratic Party’s presidential candidate in the last election has criticized President Tinubu’s economic policies, stating that one does not need to be an economist to grasp their detrimental impact on Nigeria’s future.
He further urged the President to focus on crafting sustainable solutions to the systemic shocks affecting the economy, rather than implementing measures that could worsen the crisis and spark further instability.
He said, “The increase in VAT is set to become the blazing inferno that will consume the very essence of our people… Tinubu’s actions reflect a profound insensitivity to the plight of the less fortunate as he indulges in the opulent renovation of villas and the acquisition of new jets and vehicles for himself and his family.
“President Bola Tinubu, alongside his coterie of advisers, has resolved to raise the VAT rate from 7.5 per cent to 10 per cent, even as the NNPCL has announced a soaring PMS price increase at the pump.
“This move unveils a new era of regressive and punitive policies, and its impact is destined to deepen the domestic cost-of-living crisis and exacerbate Nigeria’s already fragile economic growth.
“President Tinubu and his entourage seem to be resorting to their familiar tactic: heaping burdens upon the impoverished while steadfastly ignoring their extravagant excesses!
“One does not need to be an economist to grasp the ominous implications of President Tinubu’s ill-conceived policies for Nigeria’s future. The relentless rise in taxes and interest rates has proven excessively onerous, debilitating businesses of all sizes and leading to job losses while intensifying the suffering of the poor.”
He also noted that the manufacturing sector has faced continuous struggles since President Tinubu took office, with its contribution to the GDP dropping by over 20 percent since December 2023, according to data from the National Bureau of Statistics (NBS).
“In early August, Tinubu turned his attention to agriculture. As is customary with this administration, a new policy was clandestinely formulated and announced, permitting duty-free importation of agricultural commodities such as wheat, maize, and paddy, despite vehement opposition from farmer groups nationwide.
“This policy poses a grave threat to Nigeria’s food security ambitions, as local farmers, facing unfair competition from low-cost producers in Asia, Europe, and America, are compelled to reduce or entirely abandon their production efforts. It jeopardises job creation, wealth generation, and the sector’s long-term prosperity, casting a shadow over Nigeria’s sustainability and development.”
