Former Vice President Atiku Abubakar has criticised the 2025 budget proposal of the federal government, saying “the 2025 budget’s capacity to foster sustainable economic growth and tackle Nigeria’s deep-rooted challenges is questionable.”
According to Atiku in a statement on Sunday, the budget proposal presented by President Bola Tinubu to the National Assembly on Wednesday, reflects a continuation of business-as-usual fiscal practices, which has been a persistent trend under the APC-led administration since 2016.
Atiku argued that with a revenue forecast of N35 trillion resulting in a deficit exceeding N13 trillion or four per cent of GDP, the budget is a continuation of the trend under the APC-led administration since 2016, wherein budget deficits have been consistently presented, accompanied by an increasing reliance on external borrowing.
He also criticised the federal government’s borrowing plans, noting that “the strategy mirrors the approach of previous administrations, resulting in rising public debt and exacerbating the attendant risks related to interest payments and foreign exchange exposure.”
The 2025 federal budget, amounting to N48 trillion with a revenue forecast of N35 trillion, resulting in a deficit exceeding N13 trillion or 4 per cent of GDP, according to Atiku, is a cause for concern.
To bridge this fiscal gap, the administration plans to secure over N13 trillion in new borrowings, including N9 trillion in direct borrowings and N4 trillion in project-specific loans.
Atiku stated that “this borrowing strategy mirrors the approach of previous administrations, resulting in rising public debt and exacerbating the attendant risks related to interest payments and foreign exchange exposure.”
Atiku’s assessment of the 2025 federal budget highlights several key issues, including weak budgetary foundations, disproportionate debt servicing, unsustainable government expenditure, insufficient capital investment, and regressive taxation and economic strain.
He noted that the 2024 budget’s underperformance signals poor budgetary execution, with less than 35% of the allocated capital expenditure for MDAs disbursed by Q3 of the fiscal year, despite claims of 85% budget execution.
Atiku also pointed out that debt servicing, which accounts for N15.8 trillion, is nearly equal to planned capital expenditure, and surpasses spending on key priority sectors such as defence, infrastructure, education, and health.
He argued that the government’s recurrent expenditure remains disproportionately high, with over N14 trillion allocated to operating an oversized bureaucracy and supporting inefficient public enterprises.
Atiku said that “the lack of concrete steps to curb wastage and enhance the efficiency of public spending exacerbates the fiscal challenges, leaving limited resources for development.”
Furthermore, Atiku noted that the remaining allocation for capital spending, ranging from 25% to 34% of the total budget, is insufficient to address Nigeria’s infrastructure deficit and stimulate growth.
He said that “this equates to an average capital allocation of approximately N80,000 per capita, insufficient to meet the demands of a nation grappling with slow growth and infrastructural underdevelopment.”
Atiku also criticised the administration’s decision to increase the VAT rate from 7.5% to 10%, saying that it is a retrogressive measure that will exacerbate the cost-of-living crisis and impede economic growth.
He said that “the 2025 budget lacks the structural reforms and fiscal discipline required to address Nigeria’s multifaceted economic challenges.”
He advised that to enhance the budget’s credibility, the administration must prioritise the reduction of inefficiencies in government operations, tackle contract inflation, and focus on long-term fiscal sustainability rather than perpetuating unsustainable borrowing and recurrent spending patterns.
Atiku emphasised that “a shift towards a more disciplined and growth-oriented fiscal policy is essential for the nation’s economic recovery”.
