Former Vice President and 2023 Presidential candidate of the Peoples Democratic Party (PDP), Atiku Abubakar, has criticized President Bola Tinubu’s proposed ₦47.9 trillion 2025 budget, accusing the administration of perpetuating the borrowing patterns of former President Muhammadu Buhari.
In a statement on Sunday, Atiku expressed concerns about the budget’s reliance on deficit financing, warning that it lacked the structural reforms and fiscal discipline necessary to address Nigeria’s pressing economic challenges.
On Wednesday, President Tinubu presented the budget proposal to a joint session of the National Assembly. It earmarks ₦4.91 trillion for defence and security, ₦4.06 trillion for infrastructure, ₦2.48 trillion for health, and ₦3.52 trillion for education.
However, Atiku described the budget as “business-as-usual,” pointing to a projected deficit of over ₦13 trillion, equivalent to 4% of the country’s GDP. The administration plans to bridge this gap with ₦13 trillion in new borrowings, including ₦9 trillion in direct loans and ₦4 trillion in project-specific financing.
“This borrowing strategy mirrors past administrations, resulting in escalating public debt and heightened risks tied to interest payments and foreign exchange exposure,” Atiku stated.
He also criticised the execution of the 2024 budget, noting that by the third quarter, less than 35% of allocated capital expenditure had been disbursed despite claims of 85% implementation.
Atiku highlighted the disproportionate allocation of ₦15.8 trillion (33% of total expenditure) to debt servicing, nearly matching the planned capital expenditure of ₦16 trillion (34%). He argued that this imbalance undermines fiscal stability, crowds out essential investments, and perpetuates a cycle of increasing borrowing.
Additionally, Atiku took aim at the proposed increase in Value Added Tax (VAT) from 7.5% to 10%, calling it a regressive policy that would exacerbate the cost-of-living crisis and stifle economic growth.
“The government’s recurrent expenditure of over ₦14 trillion (30% of the budget) reflects an oversized bureaucracy and inefficient public enterprises, leaving limited resources for development projects,” he added.
Atiku emphasized that the remaining funds for capital spending—just 25% to 34% of the total budget—are insufficient to address Nigeria’s infrastructure deficit or stimulate growth, equating to only ₦80,000 (approximately $45) per capita.
He urged the Tinubu administration to prioritize disciplined and growth-focused fiscal policies, reduce inefficiencies, and focus on long-term investments in critical sectors.
“To ensure fiscal sustainability and economic growth, the government must curb wastage, enhance public spending efficiency, and rethink its borrowing strategy,” Atiku concluded.
