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
FG signals tough stance on underdeveloped Oilfields, calls for strategic IOC investments
BY Abiodun Saheed Omodara April 2, 2025 0

The Federal Government expressed its worries on Tuesday about the growing number of idle and underde...

READ ALSO
Fuel prices expect to fall below N750 by Year-End - NIPSS
BY Abiodun Saheed Omodara April 2, 2025 0

The National Institute for Policy and Strategic Studies (NIPSS) has said that with Dangote Refinery...

READ ALSO
CPPE raises concerns over proposed ban on solar panel imports amid Nigeria's energy crisis
BY Abiodun Saheed Omodara April 2, 2025 0

The Centre for the Promotion of Private Enterprise (CPPE) has raised alarms regarding the government...

READ ALSO
FG highlights need for data sharing, collaboration to tackle border crimes
BY Abiodun Saheed Omodara April 1, 2025 0

Nigeria has called for cooperation with Sahel and West African nations regarding information and dat...

READ ALSO
Fuel price crisis looms as Naira-for-Crude arrangement remains unresolved
BY Abiodun Saheed Omodara March 31, 2025 0

There is growing concern in the downstream segment of the oil and gas industry as operators anticipa...

READ ALSO
HEDA seeks Judicial declaration against Shell's Oil license transfer amidst legal concerns
BY Abiodun Saheed Omodara March 31, 2025 0

LAGOS, Nigeria - The Incorporated Trustees of the Human Environmental Development Agenda (HEDA Resou...

READ ALSO
Nigeria, Canada forge new Aviation ties with bilateral Air services agreement
BY Abiodun Saheed Omodara March 26, 2025 0

ABUJA, Nigeria - In a notable achievement for the aviation sector, the Minister of Aviation and Aero...

READ ALSO
Collaboration for Transparency: BPP, ICPC sign MOU to combat procurement fraud
BY Abiodun Saheed Omodara March 26, 2025 0

The Director-General of the Bureau of Public Procurement, Dr. Adebowale  Adedokun, has und...

OUR CHANNELS:

Lagos faces severe traffic chaos as Independence Bridge repairs begin after Sallah holiday
BY Abiodun Saheed Omodara April 3, 2025 0

LAGOS, NIGERIA - Lagos residents faced a challenging situation yesterday as they returned to work fo...


FG signs $174.6M agreement with UNIDO to enhance Nigeria's industry
BY Abiodun Saheed Omodara April 3, 2025 0

The Federal Government and the United Nations Industrial Development Organisation (UNIDO) have enter...


U.S. shows highest anxiety over AI Job loss amidst technological advancements
BY Abiodun Saheed Omodara April 3, 2025 0

Despite its advanced status, research indicates that the United States of America (USA) has the high...


Bayelsa communities threaten to halt oil production over security contract dispute
BY Abiodun Saheed Omodara April 3, 2025 0

BAYELSA, Nigeria - Nigeria’s struggling oil output may be on the brink of another crisis as co...


NITDA Partners Afrovision technologies to bridge job gap for Nigeria’s Tech Talent
BY Abiodun Saheed Omodara April 3, 2025 0

In an effort to tackle the ongoing challenge of job placement for Nigeria’s expanding tech tal...


Falana advocates for accountability and rule of law
BY Abiodun Saheed Omodara April 3, 2025 0

Human rights Lawyer, Femi Falana (SAN), has called on Nigerians to seek accountability from their le...


FG signals tough stance on underdeveloped Oilfields, calls for strategic IOC investments
BY Abiodun Saheed Omodara April 3, 2025 0

The Federal Government expressed its worries on Tuesday about the growing number of idle and underde...


OpenAI valuation hits $300 billion after SoftBank-led fund
BY Abiodun Saheed Omodara April 3, 2025 0

The Japanese telecommunications company, alongside a group of investors, has recently announced yet...


Fuel prices expect to fall below N750 by Year-End - NIPSS
BY Abiodun Saheed Omodara April 3, 2025 0

The National Institute for Policy and Strategic Studies (NIPSS) has said that with Dangote Refinery...


Nigeria imposes N20m fine, 10-Year Jail Term for Ponzi scheme offenders
BY Abiodun Saheed Omodara April 2, 2025 0

The Securities and Exchange Commission (SEC) has stated that promoters and operators of Ponzi scheme...


More Articles

Load more...

Menu