President Bola Tinubu‘s 2025 budget proposal has drawn criticism from former Vice President Atiku Abubakar, who claims that it replicates former President Muhammadu Buhari’s borrowing practices, which he claims caused Nigeria’s economy to suffer.
According to Atiku, the proposed budget repeats past administrations’ strategies by aiming to secure approximately ₦13 trillion in fresh borrowings, including ₦9 trillion in direct loans and ₦4 trillion in project-specific finance.
He contends that this approach has raised the dangers associated with interest payments and foreign exchange vulnerability while also contributing to the nation’s growing debt.
A deficit of more than ₦13 trillion, or 4% of the nation’s GDP, results from the budget’s projection of ₦48 trillion in expenses versus a revenue prediction of ₦35 trillion.
Atiku cautions that this dependence on deficit funding may jeopardise fiscal stability and displace necessary investments.
It emphasises that debt payment accounts for ₦15.8 trillion (33% of total spending), which is almost equal to the planned capital investment of ₦16 trillion (34%).
According to Atiku, this disparity may prolong a pattern of rising borrowing and unstable economic conditions.
Atiku characterises the proposed VAT hike from 7.5% to 10% as a regressive policy that could worsen the cost-of-living crisis and obstruct economic expansion. He contends that increasing taxation without resolving governance inefficiencies may hinder domestic spending and worsen financial hardship.
Atiku concludes that the 2025 budget cannot resolve Nigeria’s complex economic problems because it lacks the structural changes and budgetary restraint needed.
Instead of continuing unsustainable borrowing and recurring spending patterns, he calls on the administration to put more effort into addressing contract inflation, cutting down on government operational inefficiencies, and concentrating on long-term fiscal sustainability.
