Former Vice President Atiku Abubakar has launched a comprehensive critique of President Bola Tinubu’s proposed ₦49.7 trillion 2025 budget, arguing it falls short of addressing Nigeria’s fundamental economic challenges and represents a continuation of unsuccessful fiscal practices.
The former presidential candidate‘s analysis comes days after Tinubu presented the budget to the National Assembly, where he highlighted significant allocations to sectors including defense (₦4.91tn), infrastructure (₦4.06tn), education (₦3.5tn), and health (₦2.4tn). However, Atiku argues these allocations mask deeper structural problems within the budget’s framework.
At the heart of Atiku’s criticism is the budget’s execution capability, pointing to the current year’s poor performance where less than 35% of allocated capital expenditure for MDAs had been disbursed by the third quarter, despite claims of 85% budget execution. This track record, he suggests, casts doubt on the government’s ability to implement the 2025 budget effectively.
The former vice president expressed particular concern about the proportion of the budget dedicated to debt servicing, which at ₦15.8 trillion represents 33% of total expenditure. This figure nearly matches the planned capital expenditure of ₦16 trillion and significantly exceeds allocations to critical sectors like defense, infrastructure, education, and health.
Another key point of contention is the government’s recurrent expenditure, which Atiku describes as disproportionately high at over ₦14 trillion. He argues this substantial allocation to maintaining what he terms an “oversized bureaucracy” and supporting “inefficient public enterprises” leaves insufficient resources for developmental projects.
The former PDP presidential candidate also criticized the government’s decision to increase VAT from 7.5% to 10%, characterizing it as a regressive measure that will worsen the ongoing cost-of-living crisis. He argues this tax hike will burden an already struggling population while failing to address fundamental inefficiencies in governance.
Atiku’s analysis suggests that after accounting for debt servicing and recurrent expenditure, the remaining capital spending allocation translates to approximately ₦80,000 (US$45) per capita, which he deems insufficient for addressing Nigeria’s infrastructure deficit and stimulating economic growth.
The critique extends beyond mere numbers to question the budget’s philosophical underpinning, suggesting it lacks the structural reforms and fiscal discipline necessary for addressing Nigeria’s complex economic challenges. Atiku advocates for a fundamental shift in approach, emphasizing the need to reduce inefficiencies in government operations and address contract inflation.
The former vice president’s assessment comes at a critical time when Nigeria faces multiple economic challenges, including high inflation, currency depreciation, and growing public debt. His critique suggests that without significant reforms in fiscal policy and government spending patterns, the budget may perpetuate rather than solve these problems.
Rather than simply criticizing, Atiku proposes that enhancing the budget’s credibility requires prioritizing the reduction of operational inefficiencies, tackling contract inflation, and focusing on long-term fiscal sustainability instead of continuing what he sees as unsustainable borrowing and spending patterns.
