Former Vice President Atiku Abubakar has stated that the federal government’s 2025 budget estimates are insufficient to tackle Nigeria’s structural challenges.
In a statement, Atiku highlighted that the 2025 federal budget totals N48 trillion, with a revenue forecast of N35 trillion.
This results in a deficit of over N13 trillion, accounting for 4% of the country’s GDP. He described this budget as indicative of a continuation of the 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,”he said.
Atiku said the 2025 budget’s capacity to foster sustainable economic growth and tackle Nigeria’s deep-rooted challenges was questionable
He said this was because some of the key issues arose from several factors such as ”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.”
Atiku said ”Disproportionate Debt Servicing: Debt servicing, which accounts for N15.8 trillion (33% of the total expenditure), was 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.”
On Unsustainable Government Expenditure:, Atiku said, ”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.”
