Atiku Abubakar's Concerns Over Proposed VAT Increase and Its Economic Impact

Atiku Abubakar's Response to VAT Increase

Former Vice President Atiku Abubakar has sharply criticized the federal government's proposed increase of the Value Added Tax (VAT) rate from 7.5% to 10%. He warns that this tax hike will exacerbate Nigeria's already dire economic situation.

Economic Concerns and Impacts

In a post on his official X account, Atiku expressed his concerns that the proposed tax hike, alongside other government policies, will deepen the cost-of-living crisis, hurt businesses, and disproportionately impact the poor. He described the VAT increase as a “blazing inferno” that could further destabilize Nigeria's fragile economy.

Government's VAT Proposal

The proposal, occurring amid rising petrol prices from the Nigerian National Petroleum Corporation Limited (NNPCL), has drawn widespread criticism from economic analysts and the public. Atiku stated, “The increase in VAT is set to become the blazing inferno that will consume the very essence of our people.”

Rethinking Economic Strategies

Atiku emphasized that the VAT increase would impose further hardships on Nigerians, particularly the most vulnerable, as inflation and unemployment rates soar. He accused the Tinubu-led administration of being “profoundly insensitive” to the plight of ordinary Nigerians.

Consequences for Local Farmers

In addition to the VAT hike, Atiku criticized a recent government policy allowing duty-free importation of agricultural commodities, which he argued would severely undermine local farmers and threaten Nigeria's food security ambitions.

Future Implications

Atiku urged the Tinubu administration to rethink its economic strategies, warning that both the VAT hike and regressive measures could fuel unrest in the country.