Former Vice President and presidential candidate of the Peoples Democratic Party (PDP), Alhaji Atiku Abubakar, has strongly criticized the Federal Government’s plan to increase the Value Added Tax (VAT) from 7.5% to 10%, highlighting the severe economic challenges Nigerians have been facing over the past year.
Atiku’s condemnation follows an announcement by the Presidential Fiscal Policy and Tax Reforms Committee (PFPTRC), led by Taiwo Oyedele, which disclosed plans to propose legislation to the National Assembly that would raise the VAT rate starting in 2025. The committee’s proposal is part of a broader effort to consolidate Nigeria’s complex tax system, aiming to streamline tax processes and reduce the overall tax burden on citizens and businesses.
During a television appearance, Oyedele explained that the proposed law not only includes the initial VAT increase but also outlines future increments and the specific timelines for their implementation. However, he acknowledged uncertainty regarding how quickly the proposed law would be passed by the National Assembly.
Reacting to the proposal, Atiku took to social media platform X on Sunday to express his dismay, arguing that the planned VAT hike reveals a pattern of regressive and punitive policies that will further strain the already struggling Nigerian populace. He warned that the increase is likely to deepen the ongoing domestic cost-of-living crisis and aggravate Nigeria’s fragile economic growth, which could have long-term negative consequences for the country..
“The increase in VAT is set to become the blazing inferno that will consume the very essence of our people,” Atiku wrote.
“President Bola Tinubu, alongside his coterie of advisers, has resolved to raise the VAT rate from 7.5% to 10%, 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.”
“President Tinubu and his entourage seem to be resorting to their familiar tactic: heaping burdens upon the impoverished while steadfastly ignoring their extravagant excesses!”
“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.”
“One need not 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.”
“The manufacturing sector, in particular, has endured relentless strife since Tinubu’s ascendancy, with its contribution to the GDP diminishing by over 20% since December 2023, as reported by the NBS.”
“In early August, Tinubu turned his attention to agriculture. As is customary with this administration, a new policy was clandestinely formulated and announced, permitting duty-free importation of agricultural commodities such as wheat, maize, and paddy, despite vehement opposition from farmer groups nationwide.”
“This policy poses a grave threat to Nigeria’s food security ambitions, as local farmers, facing unfair competition from low-cost producers in Asia, Europe, and America, are compelled to reduce or entirely abandon their production efforts. It jeopardizes job creation, wealth generation, and the sector’s long-term prosperity, casting a shadow over Nigeria’s sustainability and development.
“President Tinubu and his advisers would be wise to redirect their efforts towards crafting sustainable solutions to the systemic shocks afflicting the economy rather than compounding the crisis with measures destined to ignite further turmoil.”
