The 2023 Presidential candidate of the Peoples Democratic Party, Atiku Abubakar, has criticized the 2025 budget proposal, accusing President Bola Tinubu of repeating the borrowing mistakes of his predecessor, Muhammadu Buhari.
Analyzing the budget, Atiku described it as lacking the structural reforms and fiscal discipline required to tackle Nigeria’s complex economic challenges.
In a statement issued on Sunday, he expressed skepticism about the budget’s potential to drive sustainable growth or address the country’s deep-rooted issues.
President Bola Ahmed Tinubu had presented the N47.9 trillion 2025 budget proposal to a joint session of the National Assembly on Wednesday. Key allocations include N4.91 trillion for defence and security, N4.06 trillion for infrastructure, N2.48 trillion for health, and N3.52 trillion for education.
Atiku criticized the proposal as a continuation of “business-as-usual” fiscal practices that have characterized the All Progressives Congress-led administration since 2016. He argued that such practices have resulted in persistent budget deficits and growing reliance on external borrowing.
“To bridge this fiscal gap, the administration plans to secure over N13tn in new borrowings, including N9tn in direct loans and N4tn in project-specific financing.
“This borrowing strategy mirrors the approach of previous administrations, leading to escalating public debt and compounding risks related to interest payments and foreign exchange exposure,” Atiku added.
The former Vice President emphasized the budget’s dependence on deficit financing, noting that it proposes N48 trillion in expenditures against a projected revenue of N35 trillion, leaving a deficit of over N13 trillion—equivalent to 4% of Nigeria’s GDP.
Atiku also criticized the underperformance of the 2024 budget, attributing it to poor execution capabilities.
“By the third quarter of 2024, less than 35% of the capital expenditure allocated to ministries, departments, and agencies had been disbursed, despite claims of 85% budget implementation. This raises concerns about the effective execution of the 2025 budget.
“The 2025 budget lacks the structural reforms and fiscal discipline required to address Nigeria’s multifaceted economic challenges. To enhance its credibility, the administration must prioritise reducing inefficiencies in government operations, tackling contract inflation, and focusing on long-term fiscal sustainability rather than perpetuating unsustainable borrowing and recurrent spending patterns.”
He also expressed concern about the allocation of N15.8 trillion (33% of total expenditure) to debt servicing, noting that it is nearly equal to the planned capital expenditure of N16 trillion (34%).
“This imbalance undermines fiscal stability, crowds out essential investments, and perpetuates a cycle of increasing borrowing.
“The government’s recurrent expenditure, which accounts for over N14tn (30% of the budget), remains disproportionately high, according to Atiku.
“This reflects the continued operation of an oversized bureaucracy and inefficient public enterprises, leaving limited resources for development projects,” Atiku said.
He further highlighted the inadequacy of capital spending, stating, “After accounting for debt servicing and recurrent expenditure, the remaining funds for capital spending—representing 25% to 34% of the total budget—are insufficient to address Nigeria’s infrastructure deficit or stimulate growth. This equates to an average capital allocation of N80,000 (approximately $45) per capita, which is inadequate for a country grappling with slow economic growth and infrastructural underdevelopment.”
He criticised the administration’s decision to increase the VAT rate from 7.5% to 10%, calling it a regressive measure that would exacerbate the cost-of-living crisis and impede economic growth.
“By imposing additional tax burdens on an already struggling populace, without addressing inefficiencies in governance, the government risks stifling domestic consumption and deepening economic hardship,” Atiku said.
Atiku urged a transition to disciplined, growth-oriented fiscal policies, highlighting the importance of reducing waste, improving public spending efficiency, and prioritizing investments in key sectors. He called on the administration to reconsider its borrowing approach and implement reforms to ensure long-term fiscal sustainability and economic growth.
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