Former Vice President, Atiku Abubakar, has strongly criticised the 2025 budget proposal presented by President Bola Ahmed Tinubu, accusing the administration of repeating the borrowing mistakes made by former President Muhammadu Buhari.
In a detailed statement released on Sunday, Atiku dissected the budget, asserting that it lacked the structural reforms and fiscal discipline needed to address Nigeria’s pressing economic challenges. He expressed doubts about its capacity to foster sustainable economic growth or tackle the nation’s deep-rooted issues.
On Wednesday, President Tinubu unveiled a ₦47.9 trillion 2025 budget proposal before a joint session of the National Assembly. The proposed budget allocated ₦4.91 trillion for defence and security, ₦4.06 trillion for infrastructure, ₦2.48 trillion for health, and ₦3.52 trillion for education.
Atiku described the proposed budget as a continuation of “business-as-usual” fiscal policies, which, according to him, have been a hallmark of the All Progressives Congress-led government since 2016. He argued that these practices have consistently resulted in budget deficits and an over-reliance on external borrowing.
“To bridge this fiscal gap, the administration plans to secure over ₦13 trillion in new borrowings, including ₦9 trillion in direct loans and ₦4 trillion in project-specific financing,” Atiku stated. “This borrowing strategy mirrors the approach of previous administrations, leading to escalating public debt and compounding risks related to interest payments and foreign exchange exposure.”
Atiku also highlighted the reliance on deficit financing in the 2025 budget, pointing out that it projected ₦48 trillion in expenditures against a revenue forecast of ₦35 trillion, leaving a deficit of over ₦13 trillion, which amounts to 4% of the country’s GDP.
The former vice president criticised the underperformance of the 2024 budget, stating that it reflected poor execution capabilities.
“By the third quarter of 2024, less than 35% of the capital expenditure allocated to ministries, departments, and agencies had been disbursed, despite claims of 85% budget implementation. This raises concerns about the effective execution of the 2025 budget,” he said.
Atiku emphasised that the 2025 budget lacked critical structural reforms and fiscal discipline, making it inadequate for addressing Nigeria’s multifaceted economic challenges.
“To enhance its credibility, the administration must prioritise reducing inefficiencies in government operations, tackling contract inflation, and focusing on long-term fiscal sustainability rather than perpetuating unsustainable borrowing and recurrent spending patterns,” he added.
Atiku raised concerns about the allocation of ₦15.8 trillion—33% of total expenditure—to debt servicing, noting that it was nearly equal to the planned capital expenditure of ₦16 trillion, which represents 34% of the budget.
“This imbalance undermines fiscal stability, crowds out essential investments, and perpetuates a cycle of increasing borrowing,” he said. He further criticised the high recurrent expenditure, which accounted for over ₦14 trillion or 30% of the budget, describing it as a reflection of “an oversized bureaucracy and inefficient public enterprises.”
The PDP candidate also highlighted the inadequacy of capital spending, which he said accounted for only 25% to 34% of the total budget.
“This equates to an average capital allocation of ₦80,000 (approximately $45) per capita, which is grossly insufficient for a country grappling with slow economic growth and infrastructural underdevelopment,” Atiku noted.
Atiku condemned the government’s decision to raise the Value Added Tax rate from 7.5% to 10%, calling it a regressive measure that would worsen the cost-of-living crisis and hinder economic growth.
“By imposing additional tax burdens on an already struggling populace, without addressing inefficiencies in governance, the government risks stifling domestic consumption and deepening economic hardship,” he argued.
Atiku concluded by calling for disciplined and growth-focused fiscal policies. He urged the administration to curb wastage, enhance the efficiency of public spending, and prioritise investments in critical sectors. He also stressed the need for a fundamental shift in the government’s borrowing strategy to achieve long-term fiscal sustainability and economic growth.
“The administration must rethink its approach and adopt reforms that will ensure a sustainable and prosperous future for Nigeria,” he said.
