Atiku Abubakar, the 2023 presidential candidate of the Peoples Democratic Party (PDP), has issued a stern warning about the proposed Value Added Tax (VAT) increase by President Bola Tinubu, suggesting it would have severe consequences for Nigerians.
The former vice president condemned the proposed increase, calling it a punitive measure that would further burden citizens already grappling with the government’s harsh economic policies. Atiku criticized the administration for prioritizing taxes and charges over measures that could improve the lives of Nigerians.
In a statement released on Sunday titled, “The increase in VAT is set to become the blazing inferno that will consume the very essence of our people,” Atiku argued that the VAT hike would make life even more challenging for Nigerians.
“President Bola Tinubu and his advisers have decided to raise the VAT rate from 7.5% to 10%, alongside an increase in PMS prices. This move marks the beginning of regressive and punitive policies that will worsen the cost-of-living crisis and harm Nigeria’s fragile economic growth,” Atiku stated.
He accused Tinubu’s administration of imposing heavier burdens on the poor while ignoring its own lavish spending. Atiku pointed to what he termed “extravagant excesses,” including costly renovations and the purchase of new jets and vehicles for the President and his family.
Atiku further criticized the administration’s overall economic approach, stating, “The relentless rise in taxes and interest rates is crippling businesses and causing job losses, while the manufacturing sector’s contribution to GDP has declined by over 20% since December 2023.”
He also expressed concern over the President’s decision to remove import duties on agricultural commodities like rice, maize, and other cereals, arguing that it has led to economic hardship and job losses for local farmers.
“By allowing duty-free imports of wheat, maize, and paddy, despite strong opposition from farmer groups, this policy undermines Nigeria’s food security goals,” Atiku added. “Local farmers are struggling to compete against low-cost imports, jeopardizing job creation, wealth generation, and long-term agricultural sustainability.”
Atiku urged the Tinubu administration to focus on sustainable economic solutions instead of exacerbating the crisis with counterproductive measures.
