The Human Rights Writers Association of Nigeria (HURIWA) has condemned, in strong terms, the move to increase the Value Added Tax (VAT).
Speaking during an interview on Channels TV’s Politics Today, Taiwo Oyedele, Chairman, Presidential Fiscal Policy and Tax Reforms Committee, said the committee is proposing a law to the National Assembly to increase valued added tax from the current 7.5% to 10%.
He said, “We have significant issues in our tax revenue. We have issues of revenue generally which means tax and non-tax. You can describe the whole fiscal system in a state that is in crisis.
“When my committee was set up, we had three broad mandates. The first one was to look at governance: our finances as a country, borrowing, coordination within the federal government and across sub-national.
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“The second one was revenue transformation. The revenue profile of the country is abysmally low. If you dedicate our whole revenue to fixing roads it will be insufficient. The third is on government assets.
“The law we are proposing to the National Assembly has the rate of 7.5% moving to 10% from 2025. We don’t know how soon they will be able to pass the law. Then subsequent increases are also indicated in terms of the year they will kick in.”
But responding in a statement on Sunday, Emmanuel Onwubiko, National Coordinator of the human rights group, called for an immediate reversal of the VAT hike.
He said the VAT hike and other “suffocating” fiscal measures are compounding the economic suffering of the populace.
Criticising the government for imposing additional financial strain on Nigerians, he stated that these policies were driving the population into deeper poverty.
He further warned that these actions,” influenced by the International Monetary Fund (IMF), the World Bank, and individuals like Bill Gates”, could ignite widespread unrest.
“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 statement read.
He further 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.
Despite these severe challenges, HURIWA criticised the government’s apparent disconnect from the harsh realities faced by everyday Nigerians.
“The Nigerian government is making choices that benefit these institutions but leave the Nigerian people worse off. The well-being of citizens is being sacrificed for economic targets dictated by foreign entities,” he stated.
Citing the National Bureau of Statistics (NBS), HURIWA emphasised that 133 million Nigerians, or 63% of the population, live in multidimensional poverty, a stark indicator of the country’s deteriorating socio-economic conditions.
The group stressed that this alarming figure underscores the gravity of the situation and the urgency of reversing harmful policies.
HURIWA also pointed to warnings from the United Nations, which projected that over 25 million Nigerians could face severe food insecurity between June and August 2024, primarily in northern regions.
“Factors like climate change, conflict, and poor governance contribute to this crisis, which is exacerbated by rising food prices.
“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,” HURIWA warned.
HURIWA condemned the government’s continued compliance with directives from the IMF and World Bank, which have long advocated austerity measures. The group argued that these external entities prioritise economic statistics, such as debt repayment and fiscal balances, over the welfare of the Nigerian people.
“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 the local realities,” HURIWA added.
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