By Myke Uzendu, Abuja
Former Vice President Atiku Abubakar has cautioned the administration of President Bola Ahmed Tinubu over the recent increase in the pump of petrol and the proposed increase in the Value Added Tax (VAT).
Atiku said that the policy would escalate the domestic cost-of-living crisis and exacerbate Nigeria’s already fragile economic growth and lamented that the contributions of the manufacturing sector to GDP has diminished by over 20 per cent since December 2023, due to Tinubu’s “anti-economic growth policies”.
In a statement on Sunday via his X handle, Atiku warned that the move could become a “blazing inferno that will consume the very essence of our people.”
He cautioned that the plan, coming few days after an increase in the pump price of Premium Motor Spirit, also known as fuel, by the Nigerian National Petroleum Corporation Limited (NNPCL), is “destined to deepen the domestic cost-of-living crisis and exacerbate Nigeria’s already fragile economic growth.”
The Peoples Democratic Party’s presidential candidate in the last election, said that one does not need to be an economist to understand the “implications of President Tinubu’s ill-conceived policies for Nigeria’s future.”
He stated that the President would be wise to redirect efforts towards crafting sustainable solutions to the systemic shocks afflicting the economy, rather than compounding the crisis with measures destined to ignite further turmoil.
He said: “The increase in VAT is set to become the blazing inferno that will consume the very essence of our people… Tinubu’s actions reflect a profound insensitivity to the plight of the less fortunate as he indulges in the opulent renovation of villas and the acquisition of new jets and vehicles for himself and his family.
“President Bola Tinubu, alongside his coterie of advisers, has resolved to raise the VAT rate from 7.5 per cent to 10 per cent, 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.
“President Tinubu and his entourage seem to be resorting to their familiar tactic: heaping burdens upon the impoverished while steadfastly ignoring their extravagant excesses!
“One does not need to be an economist to grasp the ominous implications of President Tinubu’s ill-conceived policies for Nigeria’s future. The relentless rise in taxes and interest rates has proven excessively onerous, debilitating businesses of all sizes and leading to job losses while intensifying the suffering of the poor.”
