Former Vice President Atiku Abubakar, he raised significant alarm over the proposed VAT increase, cautioning that it could ignite a crisis that would severely undermine Nigeria’s economic stability.
The memo, which PulseNets obtained, details how President Bola Tinubu, in collaboration with his advisers, has decided to raise the VAT rate from 7.5% to 10%, at the same time the NNPCL has announced a sharp increase in PMS prices at the pump. Abubakar’s memo argues that these actions herald a new wave of regressive policies that will intensify the cost-of-living crisis and further destabilize Nigeria’s fragile economy.
“President Tinubu and his entourage seem to be resorting to their familiar tactic: heaping burdens upon the impoverished while steadfastly ignoring their extravagant excesses!” Abubakar writes. He goes on to critique Tinubu’s indulgence in luxury renovations and the acquisition of new jets and vehicles for his family, calling it a blatant disregard for the hardships faced by ordinary Nigerians.
In the memo, reviewed by PulseNets, Atiku highlighted how Tinubu’s economic policies have resulted in rising taxes and interest rates, suffocating businesses of all sizes and causing widespread job losses. He pointed out that the manufacturing sector, in particular, has seen its contribution to GDP shrink by more than 20% since December 2023, according to data from the NBS.
In August, Atiku further noted in his memo that Tinubu turned his attention to the agricultural sector. PulseNets reported that the administration quietly enacted a new policy allowing the duty-free importation of key agricultural commodities like wheat, maize, and paddy. Despite vocal opposition from local farming groups, the policy was implemented, and Atiku warned that it poses a significant threat to Nigeria’s food security by forcing domestic farmers to compete with cheaper imports from Asia, Europe, and the Americas.
The memo makes clear that this policy threatens the long-term sustainability of Nigeria’s agricultural sector, endangers job creation, and undermines the country’s development goals. Atiku concluded by urging President Tinubu and his advisers to prioritize crafting sustainable solutions to Nigeria’s economic challenges rather than compounding the situation with policies destined to create further upheaval.
Memo from Atiku Abubakar:
“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.
“President Tinubu and his entourage seem to be resorting to their familiar tactic: heaping burdens upon the impoverished while steadfastly ignoring their extravagant excesses! 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.
“One need not 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. The manufacturing sector, in particular, has endured relentless strife since Tinubu’s ascendancy, with its contribution to the GDP diminishing by over 20% since December 2023, as reported by the NBS.
“In early August, Tinubu turned his attention to agriculture. As is customary with this administration, a new policy was clandestinely formulated and announced, permitting duty-free importation of agricultural commodities such as wheat, maize, and paddy, despite vehement opposition from farmer groups nationwide.
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“This policy poses a grave threat to Nigeria’s food security ambitions, as local farmers, facing unfair competition from low-cost producers in Asia, Europe, and America, are compelled to reduce or entirely abandon their production efforts. It jeopardises job creation, wealth generation, and the sector’s long-term prosperity, casting a shadow over Nigeria’s sustainability and development.
“President Tinubu and his advisers would be wise to redirect their efforts towards crafting sustainable solutions to the systemic shocks afflicting the economy rather than compounding the crisis with measures destined to ignite further turmoil. -AA”
