Former Vice President Atiku Abubakar has condemned the proposed 2025 budget, labeling it insufficient to address Nigeria’s deep-rooted structural challenges.
In a statement released on Sunday, Atiku criticized the N48 trillion budget, which forecasts N35 trillion in revenue and projects a deficit of over N13 trillion. He described the budget as a continuation of the “business-as-usual” fiscal policies under the APC-led government.
The budget includes plans for more than N13 trillion in new borrowings, with N9 trillion allocated for direct borrowing and N4 trillion earmarked for project-specific loans.
Atiku argued that this borrowing strategy mirrors the approach of previous administrations, further inflating public debt and heightening risks related to rising interest payments and foreign exchange fluctuations.
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The 2023 presidential candidate for the Peoples Democratic Party (PDP) outlined several concerns with the budget, including a fragile budgetary structure, escalating debt servicing costs, excessive recurrent expenditure, insufficient capital investment, and regressive tax policies.
Atiku particularly criticized the proposed increase in VAT from 7.5% to 10%, describing it as a harmful measure that will exacerbate the cost-of-living crisis and hinder 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,
“By imposing additional tax burdens on an already struggling populace while failing to address governance inefficiencies, the government risks stifling domestic consumption and further deepening economic hardship.” Atiku said.
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He said by imposing additional tax burdens on an already struggling populace while “failing to address governance inefficiencies,” the government risks stifling domestic consumption and further exacerbating economic hardship.
Atiku concluded that the budget fails to include the necessary structural reforms to tackle Nigeria’s economic challenges.
“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,” he said.
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