VAT, fuel price hikes will worsen Nigeria’s cost-of-living crisis, Atiku warns

Former Vice President Atiku Abubakar has slammed the plans by the Federal Government to increase the Value Added Tax.

Atiku said that the policy would deepen the domestic cost-of-living crisis and exacerbate Nigeria’s already fragile economic growth.

In a statement on Sunday via his X handle, Atiku said the move could become a “blazing inferno that will consume the very essence of our people.”

He noted that this move, coming on the heels of the increase in the pump price of Premium Motor Spirit, also known as fuel, by the Nigerian National Petroleum Corporation Limited, is “destined to deepen the domestic cost-of-living crisis and exacerbate Nigeria’s already fragile economic growth.”

The Peoples Democratic Party’s presidential candidate in the last election, who said one does not need to be an economist to understand the “implications of President Tinubu’s ill-conceived policies for Nigeria’s future,” added that the President would be wise to redirect efforts towards crafting sustainable solutions to the systemic shocks afflicting the economy, rather than compounding the crisis with measures destined to ignite further turmoil.

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. 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.”