10% VAT Hike: Human Rights Group accuses Nigeria of following ‘worse off’ IMF directives

HURIWA argues that the planned decision to increase the Value Added Tax (VAT) from 7.5% to 10% could ignite “widespread unrest” among the suffering populace.

HURIWA National Coordinator, Emmanuel Onwubiko, disclosed this in a statement seen by Naijaonpoint on September 8, 2024.

The statement is part of the advocacy against the policy, following criticisms from Nigerians including former Vice President Atiku Abubakar, who recently sharply criticized the federal government’s proposed VAT increase from 7.5% to 10%. He warned that the move will exacerbate Nigeria’s already dire economic situation.

“The VAT increment is just one in a series of damaging financial measures. Since the removal of fuel subsidies, petrol prices have surged by over 200%, with ripple effects on transportation, food, and other essential commodities. The average Nigerian, especially in low-income groups, is struggling to afford basic necessities. 

“The Nigerian government is making choices that benefit the International Monetary Fund and World Bank but leave the Nigerian people worse off. The well-being of citizens is being sacrificed for economic targets dictated by foreign entities. 

“These financial bodies are promoting policies that align with their global agenda, not with the survival of ordinary Nigerians. The government is blindly following their advice without considering local realities. 

“The government has done little to address poverty, unemployment, and inequality. Instead, it has implemented policies that increase the burden on citizens, with no corresponding wage increases or safety nets. This approach is unsustainable and could lead to social instability.” 

The rights group lamented the effect of inflation on the housing sector, as rising costs have forced landlords to increase rents, pushing many citizens to the edge of homelessness.

While acknowledging the potential goodwill of the foreign entities and other top philanthropists, HURIWA argued that decisions affecting millions of Nigerians should not be influenced by individuals disconnected from the country’s socio-economic conditions.

“The administration must realize that Nigerians cannot afford further hikes in the cost of living. The government should prioritize uplifting its citizens rather than impoverishing them,” the statement concluded.