Atiku Warns Tinubu, Says VAT Will Worsen Nigeria’s Cost Of Living Amid Fuel Hike
Atiku Warns Tinubu, Says VAT Will Worsen Nigeria’s Cost Of Living Amid Fuel Hike
Former Nigeria’s Vice President, Atiku Abubakar has faulted the plans by the Federal Government to increase the Value Added Tax (VAT).
Atiku who spoke via his verified X handle on Sunday said the policy would heighten the domestic cost-of-living and worsen Nigeria’s already delicate economic growth.
According to the presidential candidate of the People’s Democratic Party (PDP) in the 2023 general election, the action could become a “blazing inferno that will consume the very essence of our people.”
He noted that after the increase in the pump price of Premium Motor Spirit (PMS), also known as fuel, by the Nigerian National Petroleum Corporation Limited (NNPCL), the VAT is “destined to deepen the domestic cost-of-living crisis and exacerbate Nigeria’s already fragile economic growth.”
He said, “The increase in VAT is set to become the blazing inferno that will consume the very essence of our people…
“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.
“President Bola Tinubu, alongside his coterie of advisers, has resolved to raise the VAT rate from 7.5 per cent to 10 per cent, 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!
“One does not need to be an economist to grasp the ominous implications of President Tinubu’s ill-conceived policies for Nigeria’s future.
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“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.”
Similarly, he said the manufacturing sector, in particular, has endured relentless strife since Tinubu’s ascendancy, with its contribution to GDP diminishing by over 20 per cent 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 jeopardises job creation, wealth generation, and the sector’s long-term prosperity, casting a shadow over Nigeria’s sustainability and development.”
