Atiku Predicts Unrest Over VAT Hike

By Ayodele Oni

Former Vice President Atiku Abubakar has advised the President Bola Tinubu’s administration to rethink its economic strategies, cautioning that the Value Added Tax, (VAT) hike and other regressive measures would only fuel further unrest in the country.

The 2023 presidential candidate of the People’s Democratic Party (PDP) criticized the federal government’s proposed increase of the Value Added Tax (VAT) rate from 7.5 percent to 10, warning that the move will exacerbate Nigeria’s already dire economic situation.

In a post on his official X account on Sunday, Atiku expressed concerns that the proposed tax hike, along with other recent government policies, will deepen the cost-of-living crisis, hurt businesses, and disproportionately impact the poor.

Atiku described the VAT increase as a “blazing inferno” that could further destabilize Nigeria’s fragile economy.

“The increase in VAT is set to become the blazing inferno that will consume the very essence of our people.

“President Bola Tinubu, alongside his coterie of advisers, has resolved to raise the VAT rate from 7.5% to 10%, even as the NNPCL has announced a soaring PMS price increase at the pump.

“This move unveils a new era of regressive and punitive policies, and its impact is destined to deepen the domestic cost-of-living crisis and exacerbate Nigeria’s already fragile economic growth.”

He emphasized that the VAT increase would impose further hardship on Nigerians, particularly the most vulnerable, at a time when inflation and unemployment rates are skyrocketing.

He accused current Tinubu-led administration of being “profoundly insensitive” to the plight of ordinary Nigerians by indulging in unnecessary luxury spending.

In addition to the VAT hike, Atiku criticized a recent government policy allowing duty-free importation of agricultural commodities such as wheat, maize, and paddy.

He argued that this policy, introduced in August 2024, would severely undermine local farmers, who are unable to compete with low-cost imports from Asia, Europe, and America.

“This poses a grave threat to Nigeria’s food security ambitions, as local farmers, facing unfair competition, are compelled to reduce or entirely abandon their production efforts.”