ACCESSING THE IMPACT OF THE CURRENT TAX REFORM (VAT) BY PRESIDENT BOLA AHMED TINUBU`S ADMINISTRATION ON NIGERIAN HOUSEHOLDS IN LAPAI LOCAL GOVERNMENT AREA.

ABSTRACT The introduction of the current Value Added Tax (VAT) reform under President Tinubu’s administration has generated significant debate regarding its implications for household welfare in Nigeria. This study examines the impact of the VAT reform on households in Lapai Local Government Area, Niger State, with a particular focus on changes in household expenditure, cost of living, and purchasing power. The study was guided by the need to understand how consumption-based tax adjustments affect ordinary citizens at the local level. A descriptive survey research design was adopted. The study population comprised households across Lapai South, Lapai Central, and Lapai North, from which a representative sample was selected. Structured questionnaires were administered to gather primary data. Data were analyzed using descriptive and inferential statistical tools, including frequency distributions, percentages, and regression analysis to measure the relationship between VAT reform and household welfare indicators. Findings revealed that the VAT increase significantly influenced the prices of essential goods and services, leading to higher household expenditure and reduced purchasing power, particularly among low-income earners. The study further showed that households had to adjust consumption patterns and adopt coping strategies in response to rising costs triggered by the reform, using a Coping Strategy Index (CSI). The study concludes that while the VAT reform aims to enhance government revenue, its short-term effects impose financial pressure on households in Lapai Local Government Area. It is recommended that the government implement targeted palliative measures, expand social welfare programmes, and ensure strict price monitoring to prevent excessive exploitation by retailers. Additionally, policymakers should consider a gradual implementation framework to minimize negative economic shocks on vulnerable households.