Former Vice President Atiku Abubakar has vehemently criticized President Bola Tinubu's decision to increase the Value Added Tax (VAT) from 7.5% to 10%.
The move, according to Atiku, is set to exacerbate Nigeria's already dire economic situation and deepen the cost-of-living crisis for ordinary citizens. Atiku, who was the Peoples Democratic Party (PDP) presidential candidate in the last election, took to his X handle on Sunday to express his concerns. He stated, "The increase in VAT is set to become the blazing inferno that will consume the very essence of our people." He further accused Tinubu and his advisers of implementing regressive and punitive policies that would only worsen the economic plight of Nigerians.
The timing of the VAT hike has also raised eyebrows, coming on the heels of an announcement by the Nigerian National Petroleum Company Limited (NNPCL) about a significant increase in petrol prices.
Atiku argued that these combined measures would lead to a severe domestic cost-of-living crisis and hinder Nigeria's 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!" Atiku exclaimed. He pointed out that while ordinary Nigerians are struggling, Tinubu is indulging in lavish renovations of villas and acquiring new jets and vehicles for himself and his family.
Atiku also highlighted the adverse effects of Tinubu's policies on various sectors, particularly manufacturing and agriculture. He noted that the manufacturing sector's contribution to the GDP has diminished by over 20% since December 2023, as reported by the National Bureau of Statistics (NBS).
Additionally, a new policy allowing duty-free importation of agricultural commodities like wheat, maize, and paddy poses a grave threat to local farmers and Nigeria's food security ambitions.
"This policy jeopardizes job creation, wealth generation, and the sector’s long-term prosperity, casting a shadow over Nigeria’s sustainability and development," Atiku warned.
He urged President Tinubu and his advisers to focus on crafting sustainable solutions to the systemic shocks afflicting the economy rather than compounding the crisis with measures destined to ignite further turmoil.
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