₦airaland Forum

The former vice president made this disclosure in a statement on Sunday, reacting to the 2025 budget proposal.

Recall that President Bola Ahmed Tinubu last week presented a N49.7 trillion 2025 budget to the National Assembly. The President had based the budget on key economic assumptions, including a N36.36 trillion revenue target, inflation reduction to 15.75 per cent, an exchange rate of N1,500 per dollar, oil production at 2.06 million barrels per day, a crude oil price of $70 per barrel, and a N13.39 trillion budget deficit.

Reacting to the budget, Atiku stated that it reflects a continuation of business-as-usual fiscal practices where budgets fail to impact the lives of citizens.

According to him, the 2025 budget’s ability to foster sustainable economic growth and tackle Nigeria’s deep-rooted challenges is questionable.

Atiku also criticised the budget’s reliance on N13 trillion in borrowing to fund the deficit.

“Weak Budgetary Foundations: The 2024 budget’s underperformance signals poor budget execution. By Q3 of the fiscal year, less than 35 per cent of the allocated capital expenditure for MDAs had been disbursed, despite claims of 85 per cent budget execution. This underperformance in capital spending, crucial for fostering economic transformation, raises concerns about the execution of the 2025 budget.

“Disproportionate Debt Servicing: Debt servicing, which accounts for N15.8 trillion (33 per cent of the total expenditure), is nearly equal to the planned capital expenditure (N16 trillion, or 34 per cent). 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). This imbalance will likely crowd out essential investments and perpetuate a cycle of increasing borrowing and debt accumulation, undermining fiscal stability.

“Unsustainable Government Expenditure: The government’s recurrent expenditure remains disproportionately high, with over N14 trillion (30 per cent of the budget) allocated to operating an oversized bureaucracy and supporting inefficient public enterprises. The lack of concrete steps to curb wastage and enhance the efficiency of public spending exacerbates fiscal challenges, leaving limited resources for development.

“Insufficient Capital Investment: After accounting for debt servicing and recurrent expenditure, the remaining allocation for capital spending—ranging from 25 per cent to 34 per cent of the total budget—is insufficient to address Nigeria’s infrastructure deficit and stimulate growth. This amounts to an average capital allocation of approximately N80,000 (US$45) per capita, which is insufficient to meet the demands of a nation grappling with slow growth and infrastructural underdevelopment.

“Regressive Taxation and Economic Strain: The administration’s decision to increase the VAT rate from 7.5 per cent to 10 per cent 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.

“The 2025 budget lacks the structural reforms and fiscal discipline required to address Nigeria’s multifaceted economic challenges. To enhance the budget’s credibility, the administration must prioritise 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. A shift toward a more disciplined and growth-oriented fiscal policy is essential for the nation’s economic recovery,” he stated.

helinues:
Atiku, we are not following your name based on your earlier predictions about this government.

A I ti ku( yet to die)

Atuero:
Off point

This is a budget of continued hardship
How can you service debt with about 15Trn and still willing to pile another debt of 13Trn while wasting a whole 15Trn on recurrent expenditures that's can easily be slashed by 50% if the government is accountable


I truly empathize with us Nigerians
It's affecting even the rich, I bought turkey @150k in the market and you think there will be light at the end of the tunnel?

Kukutente23:
You can't but admire Atiku's meticulous approach to opposition and criticism.

I suspect even Tinubu does not have this kind of breakdown or analysis of the budget like the Turaki just gave us.

What he's saying in summary for those who might become jaded by the sheer technicality of his intervention is that the budget is fiscally imbalanced as debt takes the highest allocation as against the deceitful publicly claimed security.

He also calls attention to the VAT increase which will reduce demand and thus slow down growth. Most economies in the world are actually reducing VAT presently.

Lastly, he calls attention to the distorted nature of the deficit and recurrent expenditures which both show that the government is not cutting down on inefficiencies but is instead being exuberant about it.

I call on all zombies to respond in a fact based and logical manner instead of personal attacks, tantrums and tribal baiting they are known for.

Kukutente23:
You can't but admire Atiku's meticulous approach to opposition and criticism.

I suspect even Tinubu does not have this kind of breakdown or analysis of the budget like the Turaki just gave us.

What he's saying in summary for those who might become jaded by the sheer technicality of his intervention is that the budget is fiscally imbalanced as debt takes the highest allocation as against the deceitful publicly claimed security.

He also calls attention to the VAT increase which will reduce demand and thus slow down growth. Most economies in the world are actually reducing VAT presently.

Lastly, he calls attention to the distorted nature of the deficit and recurrent expenditures which both show that the government is not cutting down on inefficiencies but is instead being exuberant about it.

I call on all zombies to respond in a fact based and logical manner instead of personal attacks, tantrums and tribal baiting they are known for.

helinues:
You bought turkey at 150k. You no dey amongst those going through hardship now, what's the complain about?

Atuero:
Selfishness is when you think only about yourself and ignore the misery of others.
Before now 150k is enough for comprehensive season shopping and see where we are now yet income remains almost the same

helinues:
Okay. So you want to be lamenting? What do you expect those who can't even afford Pkomo to say now?

Be grateful bro

Kukutente23:
You can't but admire Atiku's meticulous approach to opposition and criticism.

I suspect even Tinubu does not have this kind of breakdown or analysis of the budget like the Turaki just gave us.

What he's saying in summary for those who might become jaded by the sheer technicality of his intervention is that the budget is fiscally imbalanced as debt takes the highest allocation as against the deceitful publicly claimed security.

He also calls attention to the VAT increase which will reduce demand and thus slow down growth. Most economies in the world are actually reducing VAT presently.

Lastly, he calls attention to the distorted nature of the deficit and recurrent expenditures which both show that the government is not cutting down on inefficiencies but is instead being exuberant about it.

I call on all zombies to respond in a fact based and logical manner instead of personal attacks, tantrums and tribal baiting they are known for.

Atuero:
Off point

This is a budget of continued hardship
How can you service debt with about 15Trn and still willing to pile another debt of 13Trn while wasting a whole 15Trn on recurrent expenditures that's can easily be slashed by 50% if the government is accountable


I truly empathize with us Nigerians
It's affecting even the rich, I bought turkey @150k in the market and you think there will be light at the end of the tunnel?

Angelfrost:
Everyone always has the answers till they get into that office...!

Going by how Buhari and Tinubu dragged and criticised everything Jonathan did, one would think they would have tranformed Naija into Dubai by now.

helinues:
Atiku, we are not following your name based on your earlier predictions about this government.

A I ti ku( yet to die)

Elinosweet143:
I have always rooted for this man cos i have seen firsthand what he has done not because he won't loot or he is not corrupt....na we all are but because he won't be so clueless at it and life would have been a lot easier

damkin24:
The best coach during a football match is the spectators. I think Atiku was once the vice president of this nation, if he had proposed the budget that would turn the country to paradise while in office for 8 years we won't be where we are currently.

Urheadmaster:


Atiku tell them.

But the truth of the matter is that whilst you were the vice president of federal republic of Nigeria. Your characters exposed you to whom you are. A looter and a Mikano man.

Nigerians need steady electricity and not diesel for mikano