Former Vice President Atiku Abubakar has voiced strong opposition to the federal government’s proposal to raise the Value Added Tax (VAT).
In a statement released on Sunday through his X account, Atiku warned that this policy would exacerbate the ongoing crisis surrounding the cost of living in the country.
He characterized the initiative as a “blazing inferno that threatens to engulf the very fabric of our society.”
Atiku stated, “President Bola Tinubu, along with his team of advisors, has decided to increase the VAT rate from 7.5% to 10%, all while the NNPCL has announced a significant rise in the price of PMS at the pumps.
“This decision heralds a new phase of regressive and punitive measures, which is likely to worsen the already critical cost-of-living crisis and hinder Nigeria’s fragile economic recovery.
“It appears that President Tinubu and his associates are resorting to their usual strategy of placing heavier burdens on the impoverished, all while turning a blind eye to their own extravagant lifestyles!
“The actions of Tinubu illustrate a stark insensitivity towards the struggles of the less fortunate, as he engages in lavish renovations of his residences and acquires new jets and luxury vehicles for himself and his family.
“One doesn’t need to be an economist to see the dire consequences of President Tinubu’s misguided policies on Nigeria’s future.
“The continuous rise in taxes and interest rates has become excessively burdensome, crippling businesses of all sizes and resulting in job losses, while amplifying the hardships faced by the poor.
“Particularly, the manufacturing sector has suffered immensely since Tinubu took office, with its GDP contribution declining by over 20% since December 2023, according to the NBS.
“In early August, Tinubu shifted focus to agriculture, and true to form, a new policy was quietly introduced, allowing duty-free imports of agricultural products like wheat, maize, and paddy, despite strong objections from farmer organizations across the nation.
“This policy threatens Nigeria’s food security goals, as local farmers, unable to compete with low-cost imports from Asia, Europe, and America, are forced to cut back or stop their production altogether.
“It undermines job creation, wealth generation, and the future viability of the sector, casting a long shadow over Nigeria’s sustainability and development.
“President Tinubu and his advisors would be prudent to refocus their efforts on developing sustainable solutions to the economic shocks affecting the country rather than exacerbating the crisis with measures likely to provoke further unrest.”
Atiku’s remarks follow the recent increase in the pump price of Premium Motor Spirit, widely known as fuel, by the Nigerian National Petroleum Corporation Limited.
