Former Vice President Atiku Abubakar has criticized the Federal Government’s plan to increase the Value Added Tax (VAT), saying it will deepen the domestic cost-of-living crisis and exacerbate Nigeria’s already fragile economic growth.
In a statement on Sunday via his X handle, Atiku described the move as a “blazing inferno that will consume the very essence of our people.”
Atiku noted that the increase in VAT, coming on the heels of the rise in the pump price of Premium Motor Spirit (PMS) by the Nigerian National Petroleum Corporation Limited (NNPCL), will worsen the economic situation. “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,” he said.
The Peoples Democratic Party’s presidential candidate in the last election added that the President would be wise to redirect efforts towards crafting sustainable solutions to the systemic shocks afflicting the economy, rather than compounding the crisis with measures destined to ignite further turmoil. “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 said.
Atiku also expressed concern about the impact of the policy on the manufacturing sector, which has endured relentless strife since Tinubu’s ascendancy, with its contribution to GDP diminishing by over 20 per cent since December 2023, as reported by the National Bureau of Statistics (NBS). He also criticized the government’s policy permitting duty-free importation of agricultural commodities, saying it poses a grave threat to Nigeria’s food security ambitions.
“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 Tinubu and his entourage seem to be resorting to their familiar tactic: heaping burdens upon the impoverished while steadfastly ignoring their extravagant excesses!” Atiku said. As the country grapples with economic challenges, Atiku’s criticism has highlighted the need for a more nuanced approach to addressing the nation’s economic woes.
