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Nigerians are not happy that President Buhari signed the Finance Bill yesterday. As Nairametrics reported, the President announced the signing via his Twitter handle. He told Nigerians that he was pleased with the development which would, among other things, effect the increase of VAT from 5% to 7.5%.

To catch up on that news and everything the Finance Bill entails, please follow this link. In the meantime, Nigerians are not happy over this development. So, let’s talk about that.

Outrage on Twitter: A lot of those reacting to this news are worried that implementing the Finance Bill will make life harder for the average Nigerian. As expected, the outrage stemmed mainly from the VAT increase.

One Twitter user named Chinanu Ndumele even summarised what he believes would happen now that the government has decided to increase VAT. According to him, the VAT increase would make it easier for corrupt government officials to find money to loot. Meanwhile, companies would hike the prices of their goods, even as the common man suffers.

Another Twitter user wondered why President Buhari was so eager to increase VAT from 5% to 7.5% but was reluctant to increase minimum wage.

The government had implied that the VAT increase is not going to affect average Nigerians. As promising as this sounds, Nigerians do not believe it. One Twitter user (Farin Wata) argued that even if the increase is meant for only big companies as Nigerians were meant to believe, such companies would still want to recover the added costs by simply increasing the prices of their goods and services. Unfortunately, this invariably affects the average Nigerian.

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[READ MORE: Nigerians react to power blackout with hilarious tweets)

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In the meantime, Nigerian companies are allegedly getting ready to “deal” with consumers, following the VAT increase.

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For anyone thinking this development could encourage inflation and ultimately result in devaluation, you are not alone. And Raheem Azeez has a suggestion for you.

 

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Emmanuel holds an MSc. in International Relations and a B.A in Philosophy & Logic, both from the University of Ibadan. He is a communications professional. As a Lead Business Analyst at Nairametrics, he focuses mostly on quoted companies, their products/services, and the economy in which they operate. Emmanuel is also experienced in the areas of corporate communication, brand communication, corporate storytelling, public relations, business research, management/strategy, etc. You may contact him via his direct cell phone line 09023017285 or his email- emmanuel.abara@nairametrics.com.

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