Former Vice President Atiku Abubakar has strongly criticized the federal government’s plan to raise the Value Added Tax (VAT), warning that the move will worsen Nigeria’s ongoing cost-of-living crisis.
In a statement shared via his X (formerly Twitter) handle on Sunday, Atiku condemned the decision as a “blazing inferno that will consume the very essence of our people.”
Atiku specifically called out President Bola Tinubu’s administration for its plan to increase the VAT rate from 7.5% to 10%, alongside the recent hike in petrol prices by the Nigerian National Petroleum Corporation Limited (NNPCL).
He described these actions as regressive and punitive policies that will have a detrimental effect on Nigeria’s fragile economy.
“President Bola Tinubu, alongside his coterie of advisers, has resolved to raise the VAT rate from 7.5% to 10%, even as the NNPCL has announced a soaring PMS price increase at the pump,” Atiku said.
“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.”
Atiku went further to criticize the president for what he described as a lack of sensitivity to the hardships faced by ordinary Nigerians.
“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,” he remarked.
According to Atiku, these policies are leading to a decline in critical sectors of the economy. He pointed out that the manufacturing sector has suffered greatly since Tinubu took office, with its contribution to Nigeria’s GDP decreasing by more than 20% since December 2023.
“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 added.
Atiku also raised concerns about a recently introduced agricultural policy, which allows duty-free importation of agricultural products like wheat, maize, and paddy.
He argued that this policy is harmful to Nigeria’s food security and the livelihoods of local farmers, who now face unfair competition from international producers.
“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,” he explained.
“It jeopardizes job creation, wealth generation, and the sector’s long-term prosperity, casting a shadow over Nigeria’s sustainability and development.”
Concluding his statement, Atiku urged the Tinubu administration to focus on developing sustainable economic solutions instead of implementing policies that could further destabilize the economy.
“President Tinubu and his advisers would be wise to redirect their efforts towards crafting sustainable solutions to the systemic shocks afflicting the economy rather than compounding the crisis with measures destined to ignite further turmoil.”
