Former Vice-President Atiku Abubakar has berated Nigeria’s proposed 2025 budget, describing it inadequate for addressing the nation’s economic challenges and fostering sustainable growth.
In a statement issued on Sunday December 22, Abubakar referred to the budget as a continuation of “business-as-usual” fiscal practices that increase Nigeria’s external debt burden.
“The 2025 federal budget, amounting to N48 trillion with a revenue forecast of N35 trillion, resulting in a deficit exceeding N13 trillion or 4% of GDP, reflects a continuation of business-as-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.” The statement added.
The former presidential candidate of the People’s Democratic Party, PDP argued that this borrowing strategy mirrors past administrations, further increasing public debt and compounding risks associated with interest payments and foreign exchange exposure.
While highlighting flaws in the proposed budget, Abubakar pointed to “weak budgetary foundations” and underperformance in the execution of the 2024 budget.
“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 added, maintaining that underperformance in capital spending raises concerns about the execution of the 2025 budget.
