Atiku Abubakar Warns Against ‌VAT Hike, ​Citing Devastating Consequences for Nigerians

Former‍ Vice President Atiku Abubakar has strongly cautioned the administration of President Bola Tinubu against increasing the Value Added Tax (VAT), warning that such a move would have far-reaching and devastating consequences for the⁤ Nigerian people.

In a statement, Atiku emphasized that the proposed VAT hike from 7.5% to 10% would be a “burning⁢ hell” that would exacerbate the already dire economic situation in the country. He argued that this policy would deepen the domestic ⁣cost of living crisis and further undermine Nigeria’s fragile economic growth.

Atiku’s ⁣concerns are echoed by economic analysts, who have criticized ⁣Tinubu’s economic policies as chaotic and regressive. The president’s inclination to float the naira, scrap fuel ​subsidies, and raise taxes has led to soaring energy ‍prices, unprecedented inflation, and widespread poverty.

The Lagos Chamber of Commerce and Industry (LCCI) has ⁢also‌ sounded the alarm, warning of ‌the potential for social ⁢unrest due to the government’s policies. Atiku has repeatedly criticized Tinubu’s ⁢policies, arguing that they ‌have impoverished the people while allowing the president and his allies to live lives of luxury.

Emeka Obegolu, Chairman of the Abuja Chamber of Commerce and Industry, has also weighed in, stating that the government’s policies are exposing small ​and medium enterprises to vulnerability, undermining confidence in doing business in Nigeria, and making the country unattractive for foreign direct investment.

Atiku has accused the president of being out of touch with the‌ plight of the‌ less fortunate, citing his lavish‍ renovations to his villa and the purchase of new jets and cars for himself and his family. He has also criticized the administration’s decision⁤ to charge a fee of 50 Naira for electronic transfers exceeding 10,000 Naira, labeling it as an anti-people policy.

The former ​vice president has called on the administration⁤ to shift its focus towards creating⁣ sustainable solutions to the systemic shocks plaguing the economy, rather than exacerbating the crisis with‌ measures that could trigger even greater disruption.

The Impact‌ on Nigeria’s Economy

The proposed VAT hike is just one of several policies that have raised concerns about​ the administration’s economic strategy. The ⁣manufacturing sector, in particular, has been in decline since Tinubu came to power, with its contribution to GDP declining by over 20%‍ since December ⁣2023.

The agriculture ​sector has also been affected, with the administration’s decision to allow duty-free imports of agricultural products⁤ threatening Nigeria’s food security ambitions. Local farmers are being forced to reduce their production efforts or abandon them altogether, casting⁤ a shadow ⁣over the sector’s long-term⁢ prosperity.

Atiku has urged the​ administration to reconsider its policies and prioritize the needs⁤ of the Nigerian people. He has called for a more⁤ inclusive and sustainable approach to economic development, one that takes into account the needs of all stakeholders, ⁣including small and medium enterprises, farmers, and the most vulnerable⁣ members of society.