Kehinde Fajobi
Former Vice President Atiku Abubakar has criticised the proposed 2025 national budget, arguing that it lacks the necessary structural reforms and fiscal discipline to address Nigeria’s ongoing economic challenges.
In a statement released on Sunday, the 2023 presidential candidate of the Peoples Democratic Party (PDP) expressed doubts about the budget’s ability to foster sustainable development.
He described it as a continuation of deficits and borrowing patterns seen under the APC-led government since 2016.
“The 2025 budget fails to implement the structural reforms and fiscal discipline required to tackle Nigeria’s complex economic problems.
“The government must eliminate inefficiencies, curb inflated contracts, and prioritise long-term fiscal sustainability instead of relying on excessive borrowing and recurrent expenditure,” Atiku stated.
President Bola Tinubu recently presented a ₦47.9 trillion budget to the National Assembly, allocating ₦4.91 trillion to defence and security, ₦4.06 trillion to infrastructure, ₦3.52 trillion to education, and ₦2.48 trillion to health.
However, Atiku pointed out that with revenue projections at ₦35 trillion, the budget leaves a deficit exceeding ₦13 trillion, or about 4% of GDP.
“To address this shortfall, the government plans to borrow more than ₦13 trillion, including ₦9 trillion in direct loans and ₦4 trillion for project-specific funding.
“This strategy mirrors previous ones that have increased public debt and heightened risks tied to interest payments and foreign exchange fluctuations,” he said.
Atiku also criticised the government’s budget performance in 2024, highlighting inefficiencies in capital expenditure.
“By the third quarter, less than 35% of the allocated capital expenditure had been released, despite claims of 85% execution. This raises doubts about the 2025 budget’s implementation,” he said.
The PDP leader further expressed concern over the ₦15.8 trillion allocated for debt servicing, which represents 33% of the total budget and nearly matches the ₦16 trillion set aside for capital expenditure.
“Debt servicing now surpasses spending on key sectors such as defence (₦4.91 trillion), infrastructure (₦4.06 trillion), education (₦3.52 trillion), and health (₦2.48 trillion). This imbalance reduces critical investments and exacerbates the debt burden,” Atiku argued.
He noted that recurrent expenditure, pegged at ₦14 trillion or 30% of the budget, reflects inefficiency and an over bloated bureaucracy.
He also stated that the allocation for capital investment, which accounts for just 25% to 34% of the budget, is insufficient to address the country’s infrastructure deficit.
“At approximately ₦80,000 ($45) per capita, this level of capital investment cannot stimulate meaningful economic growth,” he added.
Atiku also opposed the proposed increase in Value Added Tax (VAT) from 7.5% to 10%, calling it a regressive policy that would worsen economic hardship for Nigerians.
“Increasing taxes without addressing inefficiencies in governance will suppress consumption and deepen the cost-of-living crisis. Instead of narrowing economic inequalities, this policy will likely widen them,” he concluded.