The Human Rights Writers Association of Nigeria (HURIWA) has alleged that the Federal Government is aligning with directives from foreign entities such as the International Monetary Fund (IMF) and World Bank, labelling the development as making Nigerians “worse off.”
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 Nairametrics 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.
FG’s Tax approach unsustainable
Onwubiko criticized the government for imposing additional financial strain on Nigerians, stating that these policies are driving the population deeper into poverty.
HURIWA called for an immediate reversal of the VAT hike and other “suffocating” fiscal measures that are compounding the economic suffering of the populace.
Citing a report from the National Bureau of Statistics (NBS), he emphasized that 133 million Nigerians, or 63% of the population, live in multidimensional poverty. He described this as a stark indicator of the country’s deteriorating socio-economic conditions, which require economic-strain-reducing policies.
The group stressed that this alarming figure underscores the gravity of the situation and the urgency of reversing harmful policies.
“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.
The federal government’s ongoing tax reform initiative was launched following the establishment of a tax and fiscal policy committee by President Bola Tinubu in August 2023.
The committee is headed by renowned tax expert Taiwo Oyedele.
It is tasked with creating a new tax framework to drive economic growth and development across the country.
As part of its mandate, the committee has proposed various reforms, including an increase in Value Added Tax (VAT) and the introduction of tax exemptions for low-income earners, among other measures.
Nairametrics
