VAT, fuel price hikes will worsen cost-of-living crisis, Atiku tells FG

Former Vice President Atiku Abubakar has criticised the federal government’s plan to increase Value Added Tax (VAT), warning that the move would exacerbate the current cost-of-living crisis in Nigeria.

In a statement released on Sunday via his X handle, Atiku described the planned increase in VAT from 7.5% to 10% as a “blazing inferno that will consume the very essence of our people.”

He argued that the government’s decision, coupled with the recent hike in the pump price of Premium Motor Spirit (PMS) announced by the Nigerian National Petroleum Corporation Limited (NNPCL), would further worsen the economic hardship faced by Nigerians.

“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 said.

He accused President Bola Tinubu and his advisers of imposing heavy burdens on the poor while ignoring their own extravagant expenditures.

Atiku criticised the administration for its perceived insensitivity to the plight of ordinary Nigerians, citing the renovation of government villas and the acquisition of new jets and vehicles. He argued that these actions demonstrated a disregard for the suffering of the less fortunate.

He also warned of the broader economic implications, stating, “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.”

Atiku highlighted the struggles faced by the manufacturing sector, noting that its contribution to the GDP has decreased by over 20% since December 2023, according to the National Bureau of Statistics (NBS).

He further criticised a recent policy allowing the duty-free importation of agricultural commodities, including wheat, maize, and paddy. He argued that the policy undermines local farmers and poses a threat to Nigeria’s food security and economic stability.

“President Tinubu and his advisers would be wise to redirect their efforts towards crafting sustainable solutions to the systemic shocks afflicting the economy rather than compounding the crisis with measures destined to ignite further turmoil,” Atiku concluded.

Atiku’s comments come in response to the recent increase in the price of PMS by the NNPCL, amid growing concerns over economic challenges in the country.