Former Vice President Atiku Abubakar has criticized the federal government’s proposed increase in Value Added Tax (VAT) from 7.5% to 10%, calling it a “disastrous move” that would worsen Nigeria’s economic crisis. Atiku, the 2023 Peoples Democratic Party (PDP) presidential candidate, expressed his concerns in response to the announcement by the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, that the hike would take effect by 2025.
In a statement issued by his Senior Special Assistant on Communications, Prof. Gold Emmanuel, Atiku argued that the VAT increase, coupled with the recent petrol price hike, would exacerbate the cost-of-living crisis and further destabilize Nigeria’s fragile economy. He accused President Bola Tinubu’s administration of imposing “punitive policies” on struggling citizens while ignoring its own extravagances.
Atiku highlighted the growing economic challenges, particularly in sectors like manufacturing, which has seen its contribution to GDP shrink by over 20% since December 2023, according to the National Bureau of Statistics (NBS). He also warned that the government’s policy allowing duty-free importation of agricultural products threatens Nigeria’s food security by undercutting local farmers.
He urged the government to focus on sustainable solutions rather than pursuing policies that could lead to greater economic turmoil. In a virtual session with Nigerians in the Diaspora, Atiku called for resilience and optimism, stressing the vital role of Diasporans in shaping Nigeria’s future through remittances and investments.
The Human Rights Writers Association of Nigeria (HURIWA) echoed Atiku’s concerns, condemning the proposed VAT increase as another damaging policy that would plunge more Nigerians into poverty. In a statement by its National Coordinator, Emmanuel Onwubiko, HURIWA warned that the government’s policies, influenced by international bodies, could lead to widespread unrest if the economic pressures continue to mount.
HURIWA also pointed to the devastating effects of rising inflation on housing costs, with increased rents pushing more Nigerians to the brink of homelessness. The group called for an immediate reversal of the VAT hike and other “suffocating” fiscal measures to prevent further deterioration of living standards.