A former vice president, Atiku Abubukar has berated the federal government over its proposed hike in Value Added Tax (VAT) from 7.5 per cent to 10 per cent, describing the move as the latest inferno that would consume Nigerians.
The Peoples Democratic Party (PDP) presidential candidate in the 2023 general elections was apparently reacting to the disclosure by the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele that his committee had proposed a 2.5 per cent increase in VAT, from 7.5 per cent to 10 per cent by 2025.
In a statement issued on Sunday in Lagos by his Senior Special Assistant on Communications and Intelligence and Diaspora, Prof. Gold Emmanuel, Atiku said the state of the economy has led to untold hardship for millions of Nigerians while the poverty index has continued to rise.
The former vice-president said, “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.
“President Tinubu and his entourage seem to be resorting to their familiar tactic: heaping burdens upon the impoverished while steadfastly ignoring their extravagant excesses!
“Tinubu’s actions reflect a profound insensitivity to the plight of the less fortunate as he indulges in the opulent renovation of villas and the acquisition of new jets and vehicles for himself and his family.
“One needs not be an economist to grasp the ominous implications of President Tinubu’s ill-conceived policies for Nigeria’s future.
“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.
“The manufacturing sector, in particular, has endured relentless strife since Tinubu’s ascendancy, with its contribution to the GDP diminishing by over 20% since December 2023, as reported by the NBS.”
“In early August, Tinubu turned his attention to agriculture. As is customary with this administration, a new policy was clandestinely formulated and announced, permitting duty-free importation of agricultural commodities such as wheat, maize, and paddy, despite vehement opposition from farmer groups nationwide.
“This policy poses a grave threat to Nigeria’s food security ambitions, as local farmers, facing unfair competition from low-cost producers in Asia, Europe, and America, are compelled to reduce or entirely abandon their production efforts.
“It jeopardises job creation, wealth generation, and the sector’s long-term prosperity, casting a shadow over Nigeria’s sustainability and development.
“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, who also made a call at a virtual interactive session with some Nigerians in the Diaspora, weekend called on Nigerian citizens not to give up on the nation, regardless of the current socio-economic challenges.
“I urge you not to give up just yet. Your strength and resilience are crucial to Nigeria’s future,” he said, adding that Nigerians in the Diaspora played a big role in shaping the country’s future.
“As Nigerians living abroad, you have a unique perspective on what good governance and economic management look like. I encourage you to continue to pray for Nigeria’s deliverance .
“Your prayers and support can help bring about the transformation we need. I believe in the potential of our great nation and I know that with collective effort, we can overcome the current challenges and build a prosperous Nigeria for all.
“Continue to engage with your loved ones, offering support and encouraging peace and unity in these difficult times. Your contributions to the Nigerian economy through remittances and investments are quite crucial,” he added.
Also, the Human Right Writers Association of Nigeria (HURIWA), warned the federal government against suffocating Nigerians with toxic economic measures.
It strongly condemned the federal government’s recent decision to increase VAT from 7.5 per cent to 10 per cent.
The civil rights organisation criticised the government for imposing additional financial strain on Nigerians, stating that these policies were driving the population into deeper poverty.
HURIWA further warned that these actions, influenced by the International Monetary Fund (IMF), the World Bank, and individuals like Bill Gates, could ignite widespread unrest.
In a statement signed by its National Coordinator, Emmanuel Onwubiko, HURIWA called for an immediate reversal of the proposed VAT hike and other “suffocating” fiscal measures compounding the economic suffering of the populace.
The group cautioned that Nigerians might not endure further deterioration of their economic conditions, which could lead to civil disobedience.
“The VAT increment is just one in a series of damaging financial measures. Since the removal of fuel subsidies, petrol prices have surged by over 200%, with ripple effects on transportation, food, and other essential commodities.
“The average Nigerian, especially in low-income groups, is struggling to afford basic necessities,” the statement read, lamenting the effect of inflation on the housing sector, as rising costs had forced landlords to increase rents, pushing many citizens to the edge of homelessness.
Despite these severe challenges, HURIWA criticised the government’s apparent disconnect from the harsh realities faced by everyday Nigerians.
Chuks Okocha
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