Would you like to receive notifications on latest updates of the following headlines?

Atiku criticises Tinubu’s 2025 budget

POSTED ON December 23, 2024 •   Breaking News      BY Abiodun Saheed Omodara
Former vice president of Nigeria, Atiku Abubakar and President Bola Ahmed Tinubu

Former Vice President, Alhaji Atiku Abubakar, has exposed loopholes in the 2025 Appropriation Bill submitted to the National Assembly last Wednesday by President Bola Ahmed Tinubu

Reviewing the budget estimate, Atiku said it lacked the capacity to lead Nigeria’s economy out of the woods.

According to him, the budget failed to address necessary structural reform and fiscal discipline needed to change the course of the country’s decline.

He laughed at Tinubu’s proposal to borrow almost an equal amount of money that he proposed to spend on debt servicing in the 2024 fiscal year.

Atiku addressed shortcomings of the Appropriation Bill in an update on his X handle titled ‘Assessment of the 2025 Federal Budget: Inadequate to Address Nigeria’s Structural Challenges.’

He said: “The 2025 federal budget, amounting to N48 trillion with a revenue forecast of N35 trillion, resulting in a deficit exceeding N13 trillion or 4% of GDP, reflects a continuation of business-as-usual fiscal practices. This represents a persistent trend under the APC-led administration since 2016, wherein budget deficits have been consistently presented, accompanied by an increasing reliance on external borrowing.

“To bridge this fiscal gap, the administration plans 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 the approach of previous administrations, resulting in rising public debt and exacerbating the attendant risks related to interest payments and foreign exchange exposure.

“The 2025 budget’s capacity to foster sustainable economic growth and tackle Nigeria’s deep-rooted challenges is questionable. Key issues arise from several factors:

“Weak Budgetary Foundations: The 2024 budget’s underperformance signals poor budgetary execution. By Q3 of the fiscal year, less than 35% of the allocated capital expenditure for MDAs had been disbursed, despite claims of 85% budget execution. This underperformance in capital spending, crucial for fostering economic transformation, raises concerns about the execution of the 2025 budget.

“Disproportionate Debt Servicing: Debt servicing, which accounts for N15.8 trillion (33% of the total expenditure), is nearly equal to planned capital expenditure (N16 trillion, or 34%). Moreover, debt servicing surpasses spending on key priority sectors such as defence (N4.91 trillion), infrastructure (N4.06 trillion), education (N3.52 trillion), and health (N2.4 trillion). This imbalance will likely crowd out essential investments and perpetuate a cycle of increasing borrowing and debt accumulation, undermining fiscal stability.

“Unsustainable Government Expenditure: The government’s recurrent expenditure remains disproportionately high, with over N14 trillion (30% of the budget) allocated to operating an oversized bureaucracy and supporting inefficient public enterprises. The lack of concrete steps to curb wastage and enhance the efficiency of public spending exacerbates the fiscal challenges, leaving limited resources for development.

“Insufficient Capital Investment: After accounting for debt servicing and recurrent expenditure, the remaining allocation for capital spending, ranging from 25% to 34% of the total budget, is insufficient to address Nigeria’s infrastructure deficit and stimulate growth. This equates to an average capital allocation of approximately N80,000 (US$45) per capita, insufficient to meet the demands of a nation grappling with slow growth and infrastructural underdevelopment.

“Regressive Taxation and Economic Strain: The administration’s decision to increase the VAT rate from 7.5% to 10% is a retrogressive measure that will exacerbate the cost-of-living crisis and impede economic growth. By imposing additional tax burdens on an already struggling populace while failing to address governance inefficiencies, the government risks stifling domestic consumption and further deepening economic hardship.

“In conclusion, the 2025 budget lacks the structural reforms and fiscal discipline required to address Nigeria’s multifaceted economic challenges. To enhance the budget’s credibility, the administration must prioritize the reduction of inefficiencies in government operations, tackle contract inflation, and focus on long-term fiscal sustainability rather than perpetuating unsustainable borrowing and recurrent spending patterns. A shift towards a more disciplined and growth-oriented fiscal policy is essential for the nation’s economic recovery.”

 

READ ALSO
Tinubu to Launch Multiple Development Projects Today in Kaduna
BY Abiodun Saheed Omodara June 19, 2025 0

KADUNA, Nigeria - President Bola Tinubu is anticipated to arrive in Kaduna State today for the inaug...

READ ALSO
ECOWAS Calls for Unified Action Against Plastic Pollution at World Environment Day
BY Abiodun Saheed Omodara June 18, 2025 0

The Economic Community of West African States (ECOWAS) is calling for a unified regional effort from...

READ ALSO
Trump Proposes Visa Ban on Nigeria Amid Corruption Concerns
BY Abiodun Saheed Omodara June 15, 2025 0

The administration of U.S. President Donald Trump has initiated plans to impose a general visa ban o...

READ ALSO
Nigeria's Crude Oil Prices Surge to $80 Amid Rising Tensions Between Israel and Iran
BY Abiodun Saheed Omodara June 14, 2025 0

Amid the increasing tensions between Israel and Iran, Nigeria's crude oil prices surged to nearly $8...

READ ALSO
National Assembly Urged to Enact Laws Protecting Human Rights as Civic Space Diminishes
BY Abiodun Saheed Omodara June 14, 2025 0

ABUJA, Nigeria - Amnesty International Nigeria has urged the National Assembly to urgently enact law...

READ ALSO
LASEMA Reaffirms Commitment to Flood Management as 2025 Campaign Kicks Off
BY Abiodun Saheed Omodara June 14, 2025 0

LAGOS, Nigeria - The Lagos State Emergency Management Agency (LASEMA) has reaffirmed its readiness t...

READ ALSO
FG to Reclaim Dormant Oil Wells as NUPRC Implements 'Drill or Drop' Policy
BY Abiodun Saheed Omodara June 13, 2025 0

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has informed oil producers of its inte...

READ ALSO
House Narrowly Approves Trump-Backed Cuts to NPR, PBS and Foreign Aid
BY Abiodun Saheed Omodara June 13, 2025 0

WASHINGTON (AP) — The House voted narrowly Thursday to slash $9.4 billion in previously approv...

OUR CHANNELS:

Nigeria Police Link Schoolgirl Cannabis Clip to Zimbabwe
BY Abiodun Saheed Omodara June 19, 2025 0

The Nigeria Police Force has addressed a widely circulated video on WhatsApp and social media, which...


Tinubu to Launch Multiple Development Projects Today in Kaduna
BY Abiodun Saheed Omodara June 19, 2025 0

KADUNA, Nigeria - President Bola Tinubu is anticipated to arrive in Kaduna State today for the inaug...


Tinubu Assembles High-Level Committee After Benue Tragedy
BY Abiodun Saheed Omodara June 19, 2025 0

President Bola Tinubu announced the formation of a committee on Wednesday aimed at restoring sustain...


Finidi George Leads Rivers United into 2025/26 Season Training Camp
BY Abiodun Saheed Omodara June 19, 2025 0

Rivers United's coach, Finidi George, has motivated his players as the Port Harcourt-based team kick...


Moses Simon Completes Move to Paris FC for €7 Million
BY Abiodun Saheed Omodara June 19, 2025 0

As reported by French news source Foot Mercato, Paris FC, a newly-promoted team in French Ligue 1, h...


Osimhen's Impressive Loan Spell Fuels Transfer Speculation
BY Abiodun Saheed Omodara June 19, 2025 0

Nigerian international Victor Osimhen remains at the center of significant transfer rumors, with Ita...


NDLEA Calls for Collective Action Against Drug Abuse in Nigeria
BY Abiodun Saheed Omodara June 19, 2025 0

The National Drug Law Enforcement Agency (NDLEA) has urged Nigerians and state governments to take r...


Tor Tiv Urges President Tinubu to Foster Lasting Peace in Benue State
BY Abiodun Saheed Omodara June 19, 2025 0

The Tor Tiv, Prof. James Ayatse, expressed that President Bola Tinubu has the ability to bring lasti...


Desperate Investments: Why Nigerians Turn to Ponzi Schemes for Survival
BY Abiodun Saheed Omodara June 19, 2025 0

At a modest internet café tucked away in Egbeda, a bustling Lagos suburb, 29-year-old Chidi O...


Benue Declares Holiday for President Tinubu’s Visit Amid Security Concerns
BY Abiodun Saheed Omodara June 18, 2025 0

BENUE, Nigeria - To facilitate open discussions between residents of Benue State and President Bola...


More Articles

Load more...

Menu