Former Vice President Atiku Abubakar has strongly condemned the federal government’s plans to raise the Value Added Tax (VAT) rate and the recent increase in fuel prices by the Nigerian National Petroleum Corporation Limited (NNPCL).
In a statement released on Sunday via his X handle, Atiku warned that these measures would further exacerbate Nigeria’s cost-of-living crisis.
Atiku described the government’s actions as a “blazing inferno that will consume the very essence of our people,” criticizing President Bola Tinubu and his advisers for their decision to increase VAT from 7.5% to 10%, alongside the NNPCL’s recent hike in fuel prices.
“This move ushers in a new era of regressive and punitive policies, deepening the domestic cost-of-living crisis and worsening Nigeria’s already fragile economic growth,” Atiku said.
He accused Tinubu’s administration of burdening the poor while ignoring its own extravagant excesses, highlighting expenditures on luxury renovations, new jets, and vehicles.
Atiku expressed concern over the broader economic impact of these policies, arguing that rising taxes and interest rates are crippling businesses and leading to job losses, while intensifying the struggles of everyday Nigerians.
“One need not be an economist to grasp the ominous implications of President Tinubu’s ill-conceived policies for Nigeria’s future,” he remarked.
He also pointed to the declining performance of the manufacturing sector, which he said has shrunk by over 20% since December 2023, according to data from the National Bureau of Statistics (NBS).
Atiku further criticized the government’s agricultural policies, particularly the decision to allow duty-free imports of commodities like wheat, maize, and paddy.
He warned that this could undermine Nigeria’s food security, as local farmers face unfair competition from low-cost producers abroad, forcing many to scale back or abandon their operations.
“This policy poses a grave threat to Nigeria’s food security ambitions, jeopardizing job creation, wealth generation, and the long-term prosperity of the agricultural sector,” Atiku stated.
He urged President Tinubu and his advisers to focus on developing sustainable solutions to address the systemic economic challenges facing Nigeria, rather than implementing policies that would further worsen the situation.
Atiku’s criticisms come in the wake of NNPCL’s decision to raise the pump price of Premium Motor Spirit (PMS), commonly known as fuel, a move that has fueled concerns about inflation and the overall economic outlook.
