Former Vice President Atiku Abubakar has strongly criticized the federal government’s proposed Value Added Tax (VAT) increase, warning it would worsen Nigeria’s cost-of-living crisis.
In a statement on Sunday via his X handle, Atiku called the policy a “blazing inferno that will consume the very essence of our people,” adding that President Bola Tinubu and his advisers plan to raise the VAT rate from 7.5% to 10%, even as fuel prices soar due to the Nigerian National Petroleum Corporation Limited’s (NNPCL) recent hike.
“This move introduces a new era of regressive policies, further deepening the cost-of-living crisis and stalling Nigeria’s already fragile economic growth,” Atiku said. He accused Tinubu of burdening the poor while indulging in luxuries, including the renovation of villas and the acquisition of jets and vehicles for personal use.
Atiku also criticized the administration’s fiscal policies, citing rising taxes and interest rates, which he said are crippling businesses, causing job losses, and exacerbating the struggles of everyday Nigerians. He highlighted the manufacturing sector’s decline, noting that its contribution to GDP has dropped by over 20% since December 2023, according to the National Bureau of Statistics (NBS).
The former vice president also took aim at Tinubu’s recent policy on agriculture, which allows duty-free imports of agricultural commodities like wheat, maize, and paddy. Atiku warned that this undermines local farmers, threatening food security and jeopardizing job creation and wealth generation.
Atiku urged the administration to focus on sustainable economic solutions, stating that Tinubu’s policies are “destined to ignite further turmoil.” His comments come after the NNPCL’s recent fuel price hike, which has sparked widespread concern across the country.
