The Federal Government is allegedly following orders from foreign organizations like the World Bank and the International Monetary Fund (IMF), according to the Human Rights Writers Association of Nigeria (HURIWA), which describes this as a development that is making Nigerians “worse off.”
According to HURIWA, the Value Added Tax (VAT) increase from 7.5% to 10% could lead to “widespread unrest” among the oppressed people.
On September 8, 2024, Emmanuel Onwubiko, the HURIWA National Coordinator, revealed this in a statement obtained by The News Chronicles.
In response to criticism from Nigerians, such as former vice president Atiku Abubakar, who recently harshly criticized the federal government’s proposed VAT rise from 7.5% to 10%, the remark is part of the campaign against the idea. He issued a warning, saying the decision will make Nigeria’s already precarious economic condition worse.
FG’s Tax approach detrimental
Onwubiko said that the government’s policies are pushing Nigerians into ever-deeper poverty and that they should not be allowed to put further financial burden on them.
HURIWA demanded that the VAT increase and other “suffocating” fiscal measures that are making the public’s economic misery worse be immediately reversed.
He highlighted the fact that 133 million Nigerians, or 63% of the country’s population, live in multidimensional poverty by citing a report from the National Bureau of Statistics (NBS). This, according to him, is a clear sign of the nation’s declining socioeconomic circumstances, which call for policies aimed at easing economic hardship.
The group emphasized that this concerning statistic highlights how serious the situation is and how urgent it is to change damaging policies.
Onwubiko’s Remarks
“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 Nigerian government is making choices that benefit the International Monetary Fund and World Bank but leave the Nigerian people worse off. The well-being of citizens is being sacrificed for economic targets dictated by foreign entities.
“These financial bodies are promoting policies that align with their global agenda, not with the survival of ordinary Nigerians. The government is blindly following their advice without considering local realities.
“The government has done little to address poverty, unemployment, and inequality. Instead, it has implemented policies that increase the burden on citizens, with no corresponding wage increases or safety nets. This approach is unsustainable and could lead to social instability.”
The rights organisation bemoaned how inflation has affected the housing market, forcing landlords to raise rents and driving a large number of people to the verge of homelessness.
HURIWA contended that decisions impacting millions of Nigerians shouldn’t be made by those who are uninformed about the socioeconomic circumstances of their country, even if she acknowledged the potential goodwill of the foreign entities and other prominent philanthropists.
“The administration must understand that Nigerians cannot sustain further increases in the expense of living. The government should prioritise empowering its citizens over impoverishing them,” the statement ended.
What to note
Following President Bola Tinubu’s August 2023 formation of a tax and fiscal policy committee, the federal government began its current tax reform initiative.
The group is led by Taiwo Oyedele, a well-known tax specialist. Its job is to design a new tax system that will stimulate national economic progress.
The committee has put forth a number of reforms as part of its mandate, including suggestions like raising the Value Added Tax (VAT) and introducing tax exemptions for low-income individuals.
