Former Vice President Atiku Abubakar has criticized Nigeria’s proposed 2025 national budget, describing it as inadequate to tackle the country’s pressing structural issues.
In a statement issued on Sunday, Atiku expressed concerns over the N48 trillion budget, which includes a revenue projection of N35 trillion and a deficit exceeding N13 trillion. He labeled the fiscal plan as a continuation of “business-as-usual” practices by the All Progressives Congress (APC)-led administration, highlighting its reliance on borrowing.
The proposal allocates over N13 trillion for new loans, including N9 trillion in direct borrowing and N4 trillion for project-specific loans. Atiku, the 2023 presidential candidate of the Peoples Democratic Party (PDP), warned that such a borrowing strategy mirrors past administrations and worsens public debt, increasing risks associated with rising interest rates and currency fluctuations.
Atiku outlined critical flaws in the budget, citing:
- Weak foundational planning
- Excessive debt servicing costs
- Bloated recurrent expenditures
- Inadequate capital investment
- Regressive tax policies
Particularly, he condemned the proposed increase in Value Added Tax (VAT) from 7.5% to 10%, arguing it would worsen the cost-of-living crisis and stifle economic growth.
“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,” Atiku said.
He also criticized the government for imposing additional tax burdens on citizens without addressing inefficiencies in governance. “By failing to tackle governance inefficiencies, the government risks stifling domestic consumption and deepening economic hardship,” he added.
Atiku emphasized the need for structural reforms to address Nigeria’s economic challenges and urged the government to prioritize reducing inefficiencies, eliminating inflated contracts, and ensuring fiscal sustainability over excessive borrowing and recurrent spending.
“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,” Atiku concluded.
