The former vice president, Atiku Abubakar, says the latest hike in value-added tax (VAT) will unleash a “blazing inferno” on Nigerians, threatening to consume their economic well-being, News About Nigeria reports.
On Sunday, Atiku faulted the decision made by President Bola Tinubu and his team to increase the VAT rate from 7.5% to 10%, especially given the recent announcement by the Nigerian National Petroleum Company Limited (NNPCL) of a rise in fuel prices at the pumps.
In a statement posted on his X handle, he says that this move marks the beginning of a new era of policies that will disproportionately harm the most vulnerable members of society.
The 2023 presidential candidate of the Peoples Democratic Party said the effects of this decision will be felt deeply, leading to a surge in living costs and further weakening Nigeria’s already precarious economic situation.
“The increase in VAT is set to become the blazing inferno that will consume the very essence of our people,” the post reads.
“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.”
