Peoples Democratic Party (PDP) presidential candidate in 2023 Atiku Abubakar warned on Sunday that the proposed hike in VAT from the existing 7.5% to 10% will ignite a blazing flame that will engulf Nigerians’ very essence.
Atiku Abubakar, who served as Nigeria’s vice president in the past on Sunday, issued the warning and disclosed that “President Bola Tinubu, alongside his coterie of advisers, has resolved to raise the VAT rate from 7.5% to 10%”.
The former vice president claims that Nigerians will face greater problems as a result of this policy, which follows the Nigeria National Petroleum Company (NNPC) Limited’s recent hike in petrol prices.
“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,” Abubakar continued.
“President Tinubu and his entourage seem to be resorting to their familiar tactic: heaping burdens upon the impoverished while steadfastly ignoring their extravagant excesses.”
He stated that the acts showed “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 need not be an economist to grasp the ominous implications of President Tinubu’s ill-conceived policies for Nigeria’s future,” he explained.
“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.”
He recounted how President Tinubu had allowed food imports into Nigeria in August, a move he claimed would negatively impact the local economy by impeding growth and the creation of jobs.
“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,” stated the former vice president.
“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 jeopardizes job creation, wealth generation, and the sector’s long-term prosperity, casting a shadow over Nigeria’s sustainability and development.”
He urged the President and his advisors to refocus their efforts on developing long-term remedies for the frequent economic shocks.
“It 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,” he concluded.
