Former Vice-President Atiku Abubakar has condemned the current administration’s proposal to increase the value-added tax (VAT) from 7.5% to 10%.
In a social media post on Sunday, Atiku labeled the move as a “regressive and punitive policy” that would worsen the country’s economic challenges.
Atiku criticized President Bola Tinubu and his advisers for opting to raise VAT while also allowing the Nigerian National Petroleum Corporation Limited (NNPCL) to hike fuel prices.
He argued that these actions would only deepen the ongoing cost-of-living crisis and further strain Nigeria’s fragile economic growth.
“Tinubu’s actions reveal a profound insensitivity to the plight of the less fortunate, as he indulges in lavish renovations and acquisitions for himself and his family,” Atiku stated, expressing concern that the administration is burdening the poor while neglecting fiscal restraint.
He also highlighted the negative impact of rising taxes and interest rates on businesses, leading to job losses and increased suffering among the populace.
READ ALSO: Atiku congratulates Dangote on petrol production
Atiku pointed to the manufacturing sector, which he said has seen a significant decline in its contribution to the gross domestic product (GDP) since Tinubu took office.
Atiku also criticized the administration’s agricultural policy, which permits duty-free importation of certain commodities, warning that it threatens Nigeria’s food security by undermining local farmers.
He urged President Tinubu and his advisers to focus on sustainable solutions to address the systemic economic challenges instead of implementing measures that could worsen the situation.
Earlier in May, Taiwo Oyedele, chairman of the presidential committee on fiscal policy and tax reforms, mentioned the need to increase VAT while proposing adjustments to the sharing formula, which currently allocates 15% to the federal government, 50% to states, and 35% to local governments. The committee has recommended reducing the federal government’s share to 10%