ADP warns new Tax Law could harm farmers, markets, vulnerable Nigerians

The Action Democratic Party (ADP) has raised concerns over the planned implementation of Nigeria’s new Tax Law, warning that it could have serious economic and social consequences, particularly for farmers, traders, widows, and orphans.

In a statement issued on Sunday, the party described the proposed tax measures as a threat to the survival of millions of low-income Nigerians, arguing that the policy goes beyond fiscal reform and poses risks to food security and social welfare.

According to the ADP, Nigeria’s agricultural sector is largely dependent on smallholder farmers who operate on narrow profit margins. The party warned that taxes on farm inputs such as fertilizer, seeds, and fuel would significantly increase production costs, forcing many farmers to reduce or abandon cultivation.

The party cautioned that such developments could lead to lower crop yields, food shortages, and rising food prices nationwide. It described the taxation of agricultural inputs as effectively placing a tax on food security.

The ADP also expressed concern about the impact of consumption-based taxation and value-added tax (VAT) derivation on market traders. It warned that traders would be compelled to raise prices to remain in business, which could reduce consumer purchasing power and lead to the collapse of small and informal enterprises.

According to the party, the closure of market stalls and shops could result in job losses across supply chains, further weakening the economy. The ADP argued that a tax system that does not account for citizens’ purchasing power risks stifling economic activity rather than promoting growth.

Highlighting the social impact of economic pressure, the party drew attention to the situation of orphans, whom it described as indirect but severe victims of rising living costs. It noted that increased financial strain on families and caregivers could lead to reduced access to food, education, and community support, as well as increased child labor and school dropouts.

The ADP called on the federal government to immediately review, suspend, and restructure any tax policies that place excessive burdens on low-income citizens. The party emphasized that taxation should not become an instrument of hardship for the poor.

The statement was signed by the party’s National Chairman, Engr. Yabagi Yusuf Sani, who urged policymakers to ensure that efforts to balance government finances do not come at the expense of citizens’ welfare.