The presidential candidate of the People's Democratic Party in the 2023 election, Atiku Abubakar, has expressed significant concerns over its ability to address Nigeria's pressing economic challenges.
The former vice president argues that the budget lacks the necessary structural and fiscal discipline required for sustainable economic growth.
President Bola Ahmed Tinubu presented a N49.7 trillion budget to the National Assembly last week, based on several key economic assumptions.
These include a revenue target of N36.36 trillion, an inflation reduction goal to 15.75 percent, an exchange rate set at N1,500 per dollar, oil production pegged at 2.06 million barrels per day, a crude oil price of $70 per barrel, and a budget deficit of N13.39 trillion.
Atiku criticized the budget as a continuation of "business-as-usual fiscal practices," which he claims fail to make a tangible impact on the lives of Nigerian citizens.
He highlighted the budget's reliance on borrowing, with a N13 trillion deficit funded through loans, as a major concern. "The 2025 budget’s ability to foster sustainable economic growth and tackle Nigeria’s deep-rooted challenges is questionable," Atiku stated.
He further elaborated on the disproportionate allocation of resources, noting that debt servicing accounts for N15.8 trillion, nearly equal to the planned capital expenditure of N16 trillion.
This imbalance, he warned, could crowd out essential investments in sectors like defense, infrastructure, education, and health, thereby perpetuating a cycle of increasing borrowing and debt accumulation.
Atiku also pointed out the unsustainable nature of government expenditure, with over N14 trillion allocated to recurrent expenses, including maintaining an oversized bureaucracy.
He emphasized the need for concrete steps to curb wastage and enhance public spending efficiency.
Moreover, Atiku criticized the administration's decision to increase the VAT rate from 7.5 percent to 10 percent, describing it as a "retrogressive measure" that would exacerbate the cost-of-living crisis and impede economic growth. He urged the government to focus on reducing inefficiencies, tackling contract inflation, and prioritizing long-term fiscal sustainability.
"The 2025 budget lacks the structural reforms and fiscal discipline required to address Nigeria’s multifaceted economic challenges," Atiku concluded. He called for a shift towards a more disciplined and growth-oriented fiscal policy to ensure the nation's economic recovery.
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