Former Vice President Atiku Abubakar has condemned the federal government’s proposal to raise the Value Added Tax rate from 7.5% to 10%, warning that it could exacerbate Nigeria’s economic challenges.
In a statement posted on his official X account on Sunday, Atiku Abubakar argued that the VAT hike, combined with recent policy shifts, could intensify the cost-of-living crisis, harm businesses, and disproportionately affect lower-income households.
Atiku likened the proposed increase to a “blazing inferno” that could further destabilize Nigeria’s already fragile economy.
This proposal comes on the heels of the Nigerian National Petroleum Corporation Limited announcing higher petrol prices, drawing significant criticism from both economic analysts and the public.
The increase in VAT is set to become the blazing inferno that will consume the very essence of our people.
“The increase in VAT is set to become the blazing inferno that will consume the very essence of our people.
“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,”Atiku stated in his post.
He emphasized that this increase comes at a time of soaring inflation and unemployment rates and accused the Tinubu administration of being
“profoundly insensitive” by engaging in lavish spending while ordinary Nigerians suffer.
In addition to condemning the VAT hike, Atiku also voiced concerns about a recent policy permitting duty-free importation of agricultural commodities such as wheat, maize, and paddy. He argues that these policies could have adverse effects on the economy and local industries.
Atiku also took issue with a new policy introduced in August 2024, which allows duty-free importation of agricultural commodities such as wheat, maize, and paddy. He argued that this policy will severely impact local farmers by enabling low-cost imports from Asia, Europe, and America to flood the market, undermining their ability to compete.
“This poses a grave threat to Nigeria’s food security ambitions, as local farmers, facing unfair competition, are compelled to reduce or entirely abandon their production efforts,” he added.
The VAT increase is part of the federal government’s broader tax reform initiative, which was launched following the establishment of a tax and fiscal policy committee by President Bola Tinubu in August 2023.
The committee, led by renowned tax expert Taiwo Oyedele, is tasked with developing a new tax framework aimed at fostering economic growth and development throughout the country.
