The presidential candidate of the Peoples Democratic Party (PDP) in the 2023 election, Atiku Abubakar, has expressed concerns over the 2025 budget proposal.
According to Atiku, the budget lacks the fiscal discipline and structural reforms needed to address Nigeria’s complex economic challenges. His statement follows President Bola Ahmed Tinubu’s presentation of the N49.7 trillion budget to the National Assembly.
Atiku’s remarks suggest that the 2025 budget is a continuation of ineffective fiscal practices that have failed to improve the lives of ordinary Nigerians. He pointed out that the budget relies heavily on borrowing to cover its projected deficit, a move he deems unsustainable in the long run. He also criticized the government for relying on assumptions, such as a 15.75% inflation rate and an exchange rate of N1,500 per dollar, which he believes are unrealistic in the current economic environment.
Weak Budget Execution and High Borrowing
One of Atiku’s key criticisms of the 2025 budget is its weak execution, drawing attention to the poor performance of the 2024 budget. He noted that by the third quarter of 2024, less than 35% of the allocated capital expenditure for Ministries, Departments, and Agencies (MDAs) had been disbursed. Despite claims of 85% budget execution, this underperformance raises serious concerns about the ability of the government to execute the 2025 budget effectively.
Additionally, Atiku highlighted the government’s plan to borrow N13 trillion to fund the deficit. He argued that this reliance on debt will only worsen Nigeria’s already dire fiscal situation, leading to a perpetual cycle of borrowing and increasing debt. According to the former vice president, this excessive borrowing is a sign of poor fiscal management, which could have long-term negative effects on the nation’s economic stability.
Imbalanced Expenditure and Insufficient Capital Investment
Atiku also criticized the disproportionate allocation for debt servicing in the 2025 budget, which accounts for 33% of the total expenditure. This amount is nearly equal to the N16 trillion allocated for capital expenditure, a critical area for fostering economic growth. The budget prioritizes debt servicing over key sectors such as defense, infrastructure, education, and healthcare, which risks stifling the country’s development.
Another key concern raised by Atiku was the insufficient capital investment allocated to address Nigeria’s infrastructure deficit. After accounting for debt servicing and recurrent expenditure, only 25% to 34% of the total budget is available for capital spending. Atiku believes that this allocation, which translates to about N80,000 (US$45) per capita, is inadequate to tackle Nigeria’s slow growth and underdeveloped infrastructure.
In his statement, Atiku called for a shift toward more disciplined and growth-oriented fiscal policies. He argued that the 2025 budget must prioritize reducing inefficiencies in government operations, addressing contract inflation, and focusing on long-term fiscal sustainability. Without these reforms, he believes that Nigeria’s economic recovery will remain elusive.
