Former Vice President Atiku Abubakar has condemned the recent increase in Nigeria’s Value Added Tax (VAT), warning that the hike could worsen the country’s economic challenges.
Atiku expressed his concerns in a post on his X (formerly Twitter) handle on Sunday, describing the move as a “blazing inferno” set to consume the well-being of Nigerians.
Atiku stated that President Bola Tinubu, in consultation with his advisers, decided to raise the VAT rate from 7.5% to 10%, despite the Nigerian National Petroleum Company Limited (NNPCL) announcing a sharp increase in the price of Premium Motor Spirit (PMS).
The recent VAT hike, Atiku argued, reveals an era of “regressive and punitive policies” that will further deepen Nigeria’s cost-of-living crisis and worsen its fragile economic growth.
“The increase in VAT is set to become the blazing inferno that will consume the very essence of our people,” Atiku said, noting that Tinubu’s policies have consistently placed undue pressure on the poor while ignoring government extravagances. He also criticised the government for prioritising luxury, such as renovating villas and acquiring new jets, while the economy suffers.
Atiku further highlighted the negative impact of the VAT increase on Nigeria’s manufacturing sector, which he claimed has seen a 20% drop in its contribution to the GDP since December 2023, according to the National Bureau of Statistics.
He warned that Tinubu’s fiscal policies, including rising taxes and interest rates, are stifling businesses and causing job losses.
Additionally, Atiku criticised the administration’s agricultural policy, which allows duty-free imports of commodities like wheat, maize, and paddy. This, he said, threatens Nigeria’s food security by forcing local farmers to compete with low-cost international producers, thereby undermining job creation and wealth generation in the agricultural sector.
Atiku concluded by urging President Tinubu and his advisers to focus on creating sustainable economic solutions instead of introducing measures that exacerbate the ongoing economic crisis.
