Atiku Abubakar Criticizes VAT Increase, Warns of Economic Fallout

Former Vice President Atiku Abubakar has strongly criticized the recent hike in Value Added Tax (VAT), warning that it will have severe consequences for Nigerians. He described the increase as a policy that will "burn like wildfire and eat the souls of Nigerians."

Atiku, who contested in the last presidential election under the Peoples Democratic Party (PDP), expressed his concerns in a post on his X profile on Sunday. He highlighted that alongside the Nigerian National Petroleum Company Limited’s (NNPCL) recent increase in PMS prices, the administration of President Bola Tinubu and his advisors have raised the VAT rate from 7.5% to 10%.

Atiku described these moves as the start of a new era of punishing policies that will deepen the cost-of-living crisis and hinder Nigeria’s economic growth. “The increase in VAT is set to become the blazing inferno that will consume the very essence of our people,” he stated.

He went on to criticize President Tinubu for imposing higher taxes while spending on luxury renovations and acquisitions. “Tinubu’s actions reflect a profound insensitivity to the plight of the less fortunate,” he argued, pointing out the adverse effects on businesses and employment rates.

Atiku further noted that the manufacturing sector has been particularly affected, with its contribution to GDP declining by over 20% since December 2023, according to the National Bureau of Statistics (NBS). He also highlighted concerns about a new policy allowing duty-free importation of agricultural products, which he argued threatens local farmers and Nigeria’s food security goals.

“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 concluded.