Nigeria’s Economy on the Brink: Atiku Slams Government’s VAT Increase Plan
Former Vice President Atiku Abubakar has strongly condemned the Nigerian government’s plan to increase Value Added Tax (VAT) from 7.5% to 10%. In a statement, Atiku warned that the policy would worsen the country’s already fragile economic situation and deepen the domestic cost-of-living crisis.
Atiku described the plan as a "blazing inferno that will consume the very essence of our people," adding that it would further burden the poor and middle class, who are already struggling to make ends meet. He also criticized the government for ignoring the extravagant excesses of the elite while imposing harsh policies on the vulnerable.
The statement comes as the Nigerian National Petroleum Corporation Limited (NNPCL) has increased the pump price of Premium Motor Spirit (PMS), also known as fuel. This move has been met with widespread criticism from Nigerians, who are already reeling from the effects of high inflation and unemployment.
Atiku also highlighted the devastating impact of the government’s policies on the manufacturing sector, which has seen a significant decline in contribution to the country’s Gross Domestic Product (GDP) since 2023. He argued that the government’s obsession with imposing taxes and increasing interest rates has led to a relentless rise in poverty and suffering among the population.
Furthermore, Atiku expressed concerns about the government’s agricultural policy, which he said poses a threat to Nigeria’s food security ambitions. The policy allows for the duty-free importation of agricultural commodities, despite opposition from farmer groups nationwide. This, according to Atiku, would lead to unfair competition from low-cost producers in other countries and jeopardize job creation, wealth generation, and the sector’s long-term prosperity.
The former vice president urged the government to redirect its efforts towards crafting sustainable solutions to the country’s economic challenges rather than exacerbating the crisis with ill-conceived policies. His outburst has sparked widespread debate and concern about the future of Nigeria’s economy under the current administration.
