Former Vice President and Peoples Democratic Party (PDP) presidential candidate in the 2023 elections, Atiku Abubakar, has criticized the 2025 budget proposal, describing it as lacking the structural and fiscal discipline necessary to tackle Nigeria’s economic difficulties.
In a statement released on Sunday, Atiku expressed concerns over President Bola Ahmed Tinubu’s proposed N49.7 trillion budget, which was presented to the National Assembly last week. The budget is anchored on key economic projections, including a revenue target of N36.36 trillion, inflation reduction to 15.75%, an exchange rate of N1,500 per dollar, oil production at 2.06 million barrels per day, and a crude oil price of $70 per barrel. The budget also anticipates a deficit of N13.39 trillion.
Atiku criticized the proposal, stating it perpetuates ineffective fiscal policies and fails to significantly impact the lives of Nigerians. He questioned the budget’s capacity to drive sustainable growth or address the nation’s pressing economic issues.
One of the key concerns raised by Atiku is the government’s reliance on borrowing to fund the deficit, with over N13 trillion earmarked for loans.
“The underperformance of the 2024 budget signals weak execution capabilities. By the third quarter of 2024, less than 35% of the allocated capital expenditure for Ministries, Departments, and Agencies (MDAs) had been disbursed, despite official claims of 85% budget performance. This raises doubts about the implementation of the 2025 budget,” Atiku remarked.
He also highlighted the disproportionate allocation towards debt servicing, which stands at N15.8 trillion, representing 33% of the total expenditure. This figure is almost equal to the planned capital expenditure of N16 trillion (34%). According to Atiku, debt servicing exceeds allocations to critical sectors, including defence (N4.91 trillion), infrastructure (N4.06 trillion), education (N3.52 trillion), and health (N2.4 trillion).
Atiku argued that such imbalances could stifle investments in essential areas and exacerbate Nigeria’s debt crisis, warning that persistent borrowing without addressing the root causes of fiscal inefficiency will undermine economic stability.
“Recurrent expenditure remains high at over N14 trillion, accounting for 30% of the budget. This reflects the cost of maintaining an oversized bureaucracy and inefficient public enterprises. Without concrete measures to curb waste and improve public spending efficiency, the nation’s developmental prospects will remain limited,” he said.
The former vice president further noted that after accounting for debt servicing and recurrent expenses, the allocation for capital projects – ranging between 25% and 34% – remains insufficient to address Nigeria’s infrastructure deficit. On a per capita basis, this equates to roughly N80,000 (US$45), which Atiku described as inadequate for a country grappling with slow growth and underdevelopment.
Atiku also criticized the government’s plan to increase Value Added Tax (VAT) from 7.5% to 10%, labeling it as a retrogressive measure that will worsen the cost-of-living crisis and hinder economic recovery.
“By imposing additional taxes on struggling citizens without addressing inefficiencies in governance, the government risks stifling domestic consumption and worsening economic hardship,” he added.
Atiku called for structural reforms and fiscal discipline, urging the administration to reduce inefficiencies, combat inflated contract costs, and prioritize long-term fiscal sustainability. He emphasized the need for a shift towards a growth-oriented economic policy to ensure Nigeria’s recovery and stability.
