Former Vice President and Peoples Democratic Party (PDP) presidential candidate, Atiku Abubakar, has sharply criticised the 2025 budget proposal presented by President Bola Ahmed Tinubu, describing it as incapable of addressing Nigeria’s economic challenges.
In a detailed statement issued on Sunday, Atiku expressed concerns about the budget’s structure and fiscal discipline, asserting that it reflects “business-as-usual” practices rather than offering solutions to the country’s pressing issues.
The proposed N49.7 trillion budget, presented to the National Assembly last week, is based on ambitious economic projections, including a N36.36 trillion revenue target, an inflation rate of 15.75 per cent, and a crude oil price of $70 per barrel. Despite these optimistic assumptions, Atiku argues that the budget falls short of fostering sustainable growth or tackling Nigeria’s deep-rooted economic problems.
A Debt-Driven Budget
One of Atiku’s primary criticisms centred on the budget’s reliance on borrowing. The N13.39 trillion deficit will be financed largely through loans, further increasing Nigeria’s debt burden.
“Debt servicing, which accounts for N15.8 trillion or 33 per cent of total expenditure, is almost equal to the planned capital expenditure of N16 trillion,” Atiku noted. “This imbalance means that debt repayments take precedence over critical investments in sectors such as defence, health, and education.”
Atiku highlighted the disproportionate allocation of funds, pointing out that defence, infrastructure, education, and health collectively receive less funding than debt servicing.
“This imbalance perpetuates a vicious cycle of borrowing and fiscal instability,” he warned, adding that the government risks undermining essential investments needed for long-term growth.
Recurrent Spending and Waste
Atiku also criticised the high recurrent expenditure, which accounts for over N14 trillion, or 30 per cent of the budget. He described the government’s spending on an “oversized bureaucracy and inefficient public enterprises” as wasteful.
“The lack of concrete measures to curb inefficiencies and reduce wastage leaves limited resources for development,” he said.
He argued that after deducting recurrent expenditure and debt servicing, the remaining funds for capital projects are insufficient to address Nigeria’s massive infrastructure deficit.
“At best, the capital allocation translates to about N80,000 per Nigerian, which is grossly inadequate to stimulate economic growth or improve the country’s infrastructure,” he added.
Taxation and Economic Strain
Atiku also took issue with the government’s decision to increase Value Added Tax (VAT) from 7.5 per cent to 10 per cent, describing it as a “retrogressive measure” that will worsen the cost-of-living crisis.
“This increase will place additional burdens on an already struggling populace, stifling domestic consumption and deepening economic hardship,” he said.
He emphasised that the government must focus on addressing inefficiencies in governance rather than imposing additional taxes on citizens.
Structural Challenges and Recommendations
Atiku highlighted the failure of the 2024 budget, noting that less than 35 per cent of capital expenditure for Ministries, Departments, and Agencies (MDAs) had been disbursed by the third quarter, despite claims of 85 per cent budget execution. He argued that this underperformance raises doubts about the credibility of the 2025 budget.
“The 2025 budget lacks the structural reforms and fiscal discipline required to address Nigeria’s multifaceted economic challenges,” he stated.
He proposed several solutions to improve the budget’s effectiveness, including:
- Reducing inefficiencies in government operations.
- Tackling contract inflation.
- Focusing on long-term fiscal sustainability.
- Prioritising development-oriented policies over recurrent spending.
“These measures are essential for the nation’s economic recovery and to rebuild public trust in government spending,” Atiku concluded.
