Former Vice President Atiku Abubakar has condemned President Bola Tinubu’s 2025 federal budget, calling it “inadequate” in addressing Nigeria’s pressing economic challenges.
According to the former PDP presidential candidate, the budget, which totals N48 trillion with a revenue target of N35 trillion, reveals a deficit exceeding N13 trillion, approximately 4% of Nigeria’s GDP.
Atiku, in a statement shared via X, also argued that the budget reflects a continuation of unsustainable fiscal practices that have marked the APC-led government since 2016.
Atiku highlighted the increasing reliance on external borrowing to cover the fiscal gap, with the administration planning to secure over N13 trillion in new borrowings, including N9 trillion in direct borrowings and N4 trillion in project-specific loans.
“This borrowing strategy mirrors that of previous administrations and raises serious concerns about rising public debt, interest payments, and foreign exchange exposure,” Atiku said.
Atiku: Weak budget execution, underperformance
The former VP pointed out the weak foundations of the 2025 budget, citing the underperformance of the 2024 budget, which saw less than 35% of capital expenditure allocated to Ministries, Departments, and Agencies (MDAs) disbursed by Q3, Vanguard reported.
“If the 2024 budget’s execution is anything to go by, the 2025 budget will likely face similar challenges, hampering any meaningful economic transformation,” Atiku warned.
Atiku also criticized the disproportionate allocation for debt servicing, which accounts for 33% of the total expenditure—nearly equal to planned capital spending.
“Debt servicing has outstripped vital sectors like defence, education, health, and infrastructure. This imbalance will crowd out critical investments and perpetuate a cycle of borrowing and debt accumulation,” he said.
Atiku raises alarm on excessive recurrent expenditure
The opposition leader expressed concern over the government’s recurrent expenditure, which accounts for 30% of the budget, primarily spent on an oversized bureaucracy and inefficient public enterprises.
He argued that this leaves insufficient resources for capital investment, which is crucial for addressing Nigeria’s infrastructure deficit.
“The budget’s allocation for capital spending is insufficient to stimulate growth and development,” Atiku added.
Atiku also criticized the government’s decision to increase VAT from 7.5% to 10%, describing it as a regressive measure that will exacerbate Nigeria’s cost-of-living crisis.
2025 budget: State House to spend N15bn on new SUVs, car tyres
Legit reported earlier that the State House has allocated a total of N15.09 billion in the 2025 budget for the purchase of tyres, vehicles, and the construction of an office complex for Special Advisers and Senior Special Assistants.
This allocation, disclosed in the newly released 2025 Appropriation Bill, is part of a broader spending plan presented by President Bola Tinubu to the National Assembly on Wednesday, December 18.
