Former Vice President Atiku Abubakar has criticized President Bola Tinubu’s proposed N49.7 trillion 2025 budget, describing it as fiscally irresponsible and ill-equipped to tackle Nigeria’s economic challenges. He highlighted the budget’s over N13 trillion deficit as evidence of the continued financial mismanagement by the All Progressives Congress (APC)-led administration.
In a statement shared on his X handle on Sunday, Atiku expressed concerns over the lack of structural reforms and fiscal discipline in the budget. He said, “The 2025 federal budget, amounting to N48 trillion with a revenue forecast of N35 trillion, results in a deficit exceeding N13 trillion or 4% of GDP. This reflects the continuation of unsustainable fiscal practices under the APC-led government since 2016, marked by persistent budget deficits and increasing dependence on external borrowing.”
The former presidential candidate of the Peoples Democratic Party (PDP) criticized Tinubu’s borrowing strategy, noting that the proposed budget seeks over N13 trillion in fresh loans, including N9 trillion in direct borrowing and N4 trillion for project-specific financing. According to Atiku, this approach mirrors past administrations’ policies, further escalating public debt and compounding risks related to interest payments and foreign exchange fluctuations.
Atiku argued that the 2025 budget is unlikely to spur sustainable economic growth or resolve Nigeria’s deep-rooted challenges. He pointed out several issues undermining its effectiveness:
Weak Budgetary Execution
“The 2024 budget’s underperformance signals poor implementation. By Q3 of the fiscal year, less than 35% of allocated capital expenditure for MDAs had been disbursed, despite claims of 85% budget execution. This shortfall in capital spending, crucial for economic transformation, raises serious concerns about the 2025 budget’s execution.”
Debt Servicing Dominance
“Debt servicing, which accounts for N15.8 trillion (33% of total expenditure), nearly equals the planned capital expenditure of N16 trillion (34%). It also surpasses allocations for critical sectors such as defence (N4.91 trillion), infrastructure (N4.06 trillion), education (N3.52 trillion), and health (N2.4 trillion). This imbalance crowds out essential investments and perpetuates a cycle of borrowing and debt accumulation, undermining fiscal stability.”
Atiku further emphasized that the administration’s failure to address wasteful spending and inefficiencies in governance exacerbates Nigeria’s fiscal challenges. He warned that imposing additional taxes on an already burdened population, without tackling these inefficiencies, would stifle domestic consumption and deepen economic hardship.
He stated, “The 2025 budget lacks the structural reforms and fiscal discipline needed to address Nigeria’s multifaceted economic challenges. To enhance its credibility, the government must focus on reducing inefficiencies, curbing contract inflation, and prioritizing long-term fiscal sustainability. A disciplined, growth-oriented fiscal policy is crucial for Nigeria’s economic recovery.”
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