Former Vice President Atiku Abubakar has criticized the federal government’s plan to raise the Value Added Tax (VAT) from 7.5% to 10%, warning that the move would worsen Nigeria’s cost-of-living crisis. In a statement posted on his X handle on Sunday, Atiku described the policy as a “blazing inferno” that would consume the very essence of the Nigerian people.
Atiku said, “President Bola Tinubu, alongside his advisers, has resolved to raise the VAT rate, even as the NNPCL announced a hike in PMS prices at the pump. This move unveils a new era of regressive and punitive policies, deepening the domestic cost-of-living crisis and exacerbating Nigeria’s fragile economic growth.”
He accused Tinubu of burdening the poor while indulging in luxury, referencing the president’s renovation of villas and acquisition of jets. Atiku added, “One need not be an economist to grasp the ominous implications of President Tinubu’s ill-conceived policies for Nigeria’s future.”
Atiku also noted that Tinubu’s policies have been detrimental to businesses, leading to job losses, with the manufacturing sector’s contribution to GDP declining by over 20% since December 2023, according to the National Bureau of Statistics.
He further criticized Tinubu’s recent agricultural policy, which allows for the duty-free importation of agricultural products, warning that it poses a threat to local farmers and Nigeria’s food security. Atiku urged the government to focus on sustainable solutions to Nigeria’s economic challenges rather than introducing policies that would ignite further turmoil.
Atiku’s comments follow the recent increase in fuel prices by the Nigerian National Petroleum Corporation Limited (NNPCL).
