The presidential candidate of the Peoples Democratic Party (PDP) in the 2023 election, Atiku Abubakar, has criticized the 2025 budget proposal presented by President Bola Ahmed Tinubu, describing it as lacking the structural and fiscal discipline necessary to address Nigeria’s pressing economic challenges.
In a statement issued on Sunday, Atiku reacted to the N49.7 trillion budget unveiled by Tinubu to the National Assembly last week. The budget is based on key economic assumptions, including a N36.36 trillion revenue target, a reduction in inflation to 15.75%, an exchange rate of N1,500 per dollar, an oil production rate of 2.06 million barrels per day, a crude oil price benchmark of $70 per barrel, and a projected budget deficit of N13.39 trillion.
Atiku argued that the proposal reflects a continuation of ineffective fiscal practices that fail to deliver tangible improvements in the lives of Nigerians. He questioned the budget’s ability to foster sustainable economic growth, emphasizing its heavy reliance on N13 trillion in borrowing to fund the deficit. He highlighted that debt servicing alone accounts for N15.8 trillion—33% of the total expenditure—which nearly matches the planned capital expenditure of N16 trillion, or 34%. According to Atiku, this disproportionate allocation crowds out vital investments in critical sectors such as defence (N4.91 trillion), infrastructure (N4.06 trillion), education (N3.52 trillion), and health (N2.4 trillion).
He also pointed out the persistent issue of underperformance in budget execution, noting that less than 35% of the allocated capital expenditure for Ministries, Departments, and Agencies (MDAs) had been disbursed by the third quarter of the 2024 fiscal year, despite government claims of 85% budget execution. This, he argued, raises doubts about the government’s ability to fully implement the 2025 budget.
Atiku further criticized the government’s high recurrent expenditure of over N14 trillion (30% of the budget), which he said sustains an oversized bureaucracy and inefficient public enterprises. He lamented the lack of concrete steps to address wastage and improve spending efficiency, describing this as a major impediment to fiscal stability. Additionally, he highlighted that the budget’s allocation for capital investment—25% to 34% of the total—was insufficient to address Nigeria’s infrastructure deficit, translating to an inadequate average capital allocation of approximately N80,000 per capita.
On taxation, Atiku condemned the proposed increase in Value Added Tax (VAT) from 7.5% to 10%, describing it as a regressive measure that will exacerbate the cost-of-living crisis and hinder economic growth. He argued that imposing additional tax burdens on struggling citizens without addressing inefficiencies in governance risks further economic hardship and stagnation.
Atiku concluded by urging the administration to adopt structural reforms that prioritize fiscal discipline and sustainability. He called for measures to reduce inefficiencies in government operations, tackle contract inflation, and curb unsustainable borrowing and spending patterns. According to him, shifting to a disciplined and growth-oriented fiscal policy is critical for Nigeria’s economic recovery and long-term development.
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