The 2023 presidential candidate of the Peoples Democratic Party (PDP), Atiku Abubakar, has said the 2025 budget is inadequate to tackle Nigeria’s economic challenges, describing it as a business-as-usual fiscal practice.

Atiku, a former vice president, said the budget, amounting to N48 trillion with a revenue forecast of N35 trillion, resulting in a deficit exceeding N13 trillion or 4% of GDP, increases Nigeria’s external debt burden.

“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,”he said.
He went on to identify lapses in the budget, one of which he cited as“Weak Budgetary Foundations,” saying 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,” he said.
Atiku raised concerns about the execution of the 2025 budget due to the underperformance in capital spending.

“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%),” he said.
“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).”
According to him, a cycle of rising borrowing and debt accumulation may threaten fiscal stability due to the imbalance.

Also mentioning“Unsustainable Government Expenditure,” he 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.

He added that the “lack of concrete steps to curb wastage and enhance the efficiency of public spending exacerbates the fiscal challenges, leaving limited resources for development.”

Citing“Insufficient Capital Investment,” Atiku lamented that 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.
He said it amounts to an average capital allocation of about N80,000 ($45) per capita, insufficient to meet the demands of a country “grappling with slow growth and infrastructural underdevelopment.”
Citi g“Regressive Taxation and Economic Strain,” he said 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.

He slammed the Federal Government for imposing more taxes in Nigeria amid the economic challenges which he says the 2025 budget can’t address because of the lack of “structural reforms and fiscal discipline.”

He said 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.