Former Vice President Atiku Abubakar has raised concerns over the 2025 federal budget presented by President Bola Tinubu, describing it as inadequate to address Nigeria’s economic challenges due to its lack of structural reforms and fiscal discipline.
The N48 trillion budget, which projects a revenue of N35 trillion and a deficit exceeding N13 trillion (4% of GDP), has been criticized for its continued reliance on external borrowing.
Atiku argued that this approach, including plans to secure over N13 trillion in new loans, mirrors past fiscal practices that have led to rising public debt and increased economic risks tied to interest payments and foreign exchange exposure.
Highlighting poor budgetary execution, Atiku pointed to the 2024 budget, which disbursed less than 35% of its allocated capital expenditure by the third quarter, despite claims of 85% execution. He warned that similar inefficiencies could undermine the 2025 budget’s implementation.
Atiku also criticized the disproportionate allocation for debt servicing, which amounts to N15.8 trillion (33% of total expenditure) and nearly equals the planned capital expenditure of N16 trillion.
This, he argued, surpasses funding for critical sectors like defense, infrastructure, education, and health, crowding out essential investments and perpetuating a cycle of borrowing and debt accumulation.
Recurrent expenditure, exceeding N14 trillion (30% of the budget), was described as unsustainable, with Atiku accusing the government of funding an oversized bureaucracy and inefficient public enterprises.
He argued that insufficient capital investment, amounting to just 25% to 34% of the budget, fails to address Nigeria’s infrastructure deficit and economic growth needs.
Additionally, Atiku criticized the planned VAT increase from 7.5% to 10%, warning that it would exacerbate the cost-of-living crisis and stifle economic growth by imposing additional burdens on already struggling Nigerians.
As a solution, he called on the administration to reduce inefficiencies in government spending, tackle inflated contracts, and adopt growth-oriented fiscal policies.
Atiku emphasized that without these reforms, the 2025 budget would be incapable of driving sustainable economic growth or addressing Nigeria’s pressing structural challenges.
