Concerns are mounting over Nigeria’s 2025 budgets at both federal and state levels, with analysts expressing doubts about the proposed figures’ ability to address the nation’s pressing humanitarian and infrastructural needs.
Federal Budget Overview
President Bola Tinubu proposed a substantial budget of N49.7 trillion for 2025, titled the “Budget of Restoration: Securing Peace, Rebuilding Prosperity.” This marks a significant increase from the N28.77 trillion budget of 2024. However, critics argue that despite the increased allocation, the budget may not effectively tackle the challenges faced by ordinary Nigerians.
A major concern is the allocation of funds, with large portions earmarked for recurrent expenditure and debt servicing, leaving limited resources for direct welfare improvements.
Debt servicing alone accounts for N15.8 trillion, or 45% of the projected N34.82 trillion revenue, raising questions about Nigeria’s fiscal sustainability. This allocation exceeds the combined N14.97 trillion designated for critical sectors like security, infrastructure, education, and health.
Civil society organisations have called on the National Assembly to reduce non-essential spending, including the N344.85 billion allocated for lawmakers and N9.4 billion for travel, refreshment, and catering costs for the presidency. According to the Socio-Economic Rights and Accountability Project (SERAP), these expenditures are unnecessary given the country’s dire economic situation and proposed borrowings to fund the 2025 budget.
State Budgets and Recurrent Expenditure
An analysis of budgets from 13 states, including Lagos, Oyo, Osun, Bayelsa, and Bauchi, shows a combined proposed expenditure of N9.07 trillion for 2025. Out of this, N3.87 trillion is allocated for recurrent expenditure, covering administrative costs like salaries and overheads.
This pattern raises concerns about the states’ focus on maintaining government operations at the expense of capital projects aimed at infrastructure development. This is particularly worrisome as the World Bank estimates over 129 million Nigerians now live below the poverty line.
Education Sector Concerns
The Federal Government’s allocation of 7% (N3.52 trillion) of the 2025 budget to education has drawn criticism from the Academic Staff Union of Universities (ASUU). This figure falls short of the 15-20% benchmark recommended by UNESCO and the United Nations Population Fund (UNFPA) for developing countries.
ASUU warned that underfunding the education sector could worsen existing challenges, such as inadequate infrastructure and poor welfare for educators, deterring qualified professionals from joining the field.
Broader Implications
Olu Fasan, a popular columnist, criticized the budget’s ability to address the hardships faced by Nigerians, citing ongoing issues like hunger and insecurity. He described the budget as offering “yet another false hope,” similar to previous budgets that failed to make meaningful impacts.
Analysts warn that without strategic shifts in spending patterns and policy reforms, the 2025 budget may not significantly improve living standards. The heavy focus on recurrent expenditure and debt servicing underscores the need for a comprehensive review of budgetary priorities to ensure sustainable growth.
The debate over Nigeria’s 2025 budgets highlights the need for fiscal discipline, innovative funding strategies, and people-centered policies to address the nation’s pressing developmental challenges.
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