Former Vice President and 2023 presidential candidate of the Peoples Democratic Party (PDP), Atiku Abubakar, has criticised President Bola Tinubu’s 2025 budget proposal, accusing him of repeating the borrowing errors of his predecessor, Muhammadu Buhari.
In a statement released on Sunday, Atiku analysed the proposed budget, describing it as lacking the structural reforms and fiscal discipline required to address Nigeria’s pressing economic challenges. He expressed skepticism about its potential to foster sustainable economic growth or resolve the country’s enduring issues.
On Wednesday, President Tinubu presented a ₦47.9 trillion budget proposal for 2025 to a joint session of the National Assembly. The budget allocates ₦4.91 trillion to defence and security, ₦4.06 trillion to infrastructure, ₦2.48 trillion to health, and ₦3.52 trillion to education.
Atiku criticised the proposal, labelling it a continuation of the “business-as-usual” practices he claims have characterised All Progressives Congress (APC) administrations since 2016. These practices, he said, have resulted in consistent budget deficits and an overreliance on external borrowing.
Atiku pointed to the administration’s plan to secure over ₦13 trillion in new borrowings—₦9 trillion in direct loans and ₦4 trillion in project-specific financing—as evidence of a flawed fiscal strategy. He argued that this mirrors past approaches, which have exacerbated public debt and increased exposure to interest rate and foreign exchange risks.
The former Vice President highlighted the projected ₦48 trillion in expenditures against a revenue forecast of ₦35 trillion, creating a deficit exceeding ₦13 trillion, or 4% of the GDP. He also criticised the underperformance of the 2024 budget, citing that less than 35% of capital expenditure had been disbursed by the third quarter, despite claims of 85% implementation.
Atiku underscored the imbalance in budget allocation, noting that ₦15.8 trillion (33% of total expenditure) is earmarked for debt servicing, nearly equal to the planned capital expenditure of ₦16 trillion (34%).
“This imbalance undermines fiscal stability, limits essential investments, and perpetuates a cycle of escalating borrowing,” he said.
Atiku also criticised the ₦14 trillion (30% of the budget) allocated to recurrent expenditure, arguing that it reflects an oversized bureaucracy and inefficient public enterprises, leaving insufficient resources for development projects.
He described the capital spending allocation, which represents only 25% to 34% of the budget, as inadequate to address Nigeria’s infrastructure deficit or stimulate growth. This amounts to an average of ₦80,000 (approximately $45) per capita, a figure he deemed insufficient for a country grappling with economic stagnation and underdevelopment.
The PDP candidate also condemned the administration’s decision to raise the Value Added Tax (VAT) rate from 7.5% to 10%, calling it a regressive move that would worsen the cost-of-living crisis and hinder economic growth.
“By imposing additional tax burdens on an already struggling populace without addressing inefficiencies in governance, the government risks stifling domestic consumption and worsening economic hardship,” Atiku stated.
