Former Vice President and 2023 presidential candidate of the Peoples Democratic Party (PDP), Atiku Abubakar, has criticized President Bola Tinubu’s proposed 2025 budget, describing it as insufficient to address Nigeria’s pressing economic challenges.
Atiku expressed concerns over the N48 trillion budget with a N35 trillion revenue projection, leaving a deficit of over N13 trillion—about 4% of the GDP which he said would worsen the country’s external debt burden.
Atiku noted that the government plans to borrow over N13 trillion to bridge the fiscal gap, including N9 trillion in direct loans and N4 trillion for specific projects.
He accused the APC-led administration of relying heavily on borrowing since 2016, which threatens fiscal stability.
Atiku highlighted that by the third quarter of 2024, only 35% of capital expenditure for ministries, departments, and agencies (MDAs) had been disbursed, despite claims of 85% execution.
He warned that poor execution could hamper the effectiveness of the 2025 budget as he slammed high Debt Servicing Costs
‘The budget allocates N15.8 trillion (33% of total expenditure) for debt servicing, nearly matching capital expenditure at N16 trillion (34%).
He noted that debt servicing exceeds allocations for key sectors like defence (N4.91 trillion), infrastructure (N4.06 trillion), education (N3.52 trillion), and health (N2.4 trillion).
Atiku criticized the allocation of over N14 trillion (30%) for recurrent spending, describing it as supporting an oversized bureaucracy and inefficient public enterprises.
He called for reforms to curb wastage and improve spending efficiency.
After debt servicing and recurrent spending, only 25-34% of the budget is allocated for capital projects, this Atiku inducated is insufficient to address Nigeria’s infrastructure deficits.
Atiku calculated this as an average of N80,000 ($45) per capita, which he deemed inadequate for economic growth.
Atiku slammed the 10% VAT increase from 7.5%, labeling it as a retrogressive tax policy that could worsen the cost-of-living crisis and slow economic recovery.
Atiku therefore urged the government to: Cut inefficiencies in government spending to curb contract inflation and focus on long-term fiscal sustainability instead of relying on borrowing.
He also asked Government to implement structural reforms to address economic challenges effectively.
Atiku maintained that the 2025 budget reflects a business-as-usual approach that fails to address Nigeria’s economic difficulties. He emphasized the need for fiscal discipline and strategic reforms to restore economic stability and growth.