Former Vice-President Atiku Abubakar has strongly criticized the Federal Government’s proposal to increase the Value Added Tax (VAT) from 7.5% to 10%, describing it as a move that could become a “blazing inferno that will consume the very essence of our people.” Atiku’s remarks came in response to comments made by Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, during an interview on Channels TV’s *Politics Today*.
Oyedele revealed that the committee is drafting a law for the National Assembly that proposes increasing VAT rates to 10% from 2025 to address Nigeria’s revenue crisis. He highlighted the need to transform the country’s revenue system, noting that current revenues are insufficient to cover even basic infrastructure needs.
Reacting to the proposal in a statement on Sunday, Atiku, the People’s Democratic Party (PDP) presidential candidate in the last election, warned that the VAT increase, alongside the recent hike in fuel prices by the Nigerian National Petroleum Corporation Limited (NNPCL), could deepen Nigeria’s cost-of-living crisis and harm economic growth. He argued that President Bola Tinubu’s policies could lead to “systemic shocks” for the economy.
Atiku condemned what he called President Tinubu’s “profound insensitivity” to the plight of ordinary Nigerians while engaging in what he described as “opulent renovations” and luxury acquisitions. He emphasized that the proposed VAT increase is part of a broader trend of regressive policies that disproportionately affect the less privileged, increase job losses, and stifle economic development.
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Atiku further criticized the administration’s decision to permit duty-free importation of agricultural commodities, arguing that it threatens Nigeria’s food security and undermines local farmers who cannot compete with cheaper imports. He warned that such policies could jeopardize job creation, wealth generation, and the long-term prosperity of the agricultural sector.
As the debate over fiscal policy reforms and VAT hikes continues, Atiku’s statement reflects growing concerns among opposition figures and citizens about the potential impact on Nigeria’s fragile economy and the livelihood of its people.
