Tinubu Repeating Buhari’s Borrowing Mistakes, Says Atiku
Former Vice President and 2023 Presidential candidate of the Peoples Democratic Party (PDP), Atiku Abubakar, has criticised President Bola Tinubu’s 2025 budget proposal, accusing his administration of continuing the borrowing patterns of the previous government led by Muhammadu Buhari.
In a statement released on Sunday, Atiku described the N47.9 trillion budget as lacking the structural reforms and fiscal discipline required to address Nigeria’s economic challenges. He expressed skepticism about its ability to promote sustainable growth or resolve the nation’s economic issues.
President Tinubu presented the budget last Wednesday to the National Assembly, allocating N4.91 trillion for defence and security, N4.06 trillion for infrastructure, N2.48 trillion for health, and N3.52 trillion for education. Atiku criticised the proposal, claiming it reflects a continuation of inefficient fiscal practices by the All Progressives Congress (APC) since 2016.
He raised concerns about the plan to secure over N13 trillion in new borrowings, comprising N9 trillion in direct loans and N4 trillion in project-specific financing. Atiku argued that such a strategy exacerbates public debt and heightens interest payments and foreign exchange exposure risks. He highlighted the projected deficit of over N13 trillion, representing 4% of Nigeria’s GDP, resulting from expenditures of N48 trillion against a revenue forecast of N35 trillion.
Atiku also pointed out flaws in budget implementation, noting that less than 35% of the 2024 capital expenditure had been disbursed by the third quarter, despite claims of 85% budget execution. He said this raises doubts about the administration’s capacity to deliver on its 2025 targets.
He criticised the allocation of N15.8 trillion to debt servicing, almost equal to the N16 trillion planned for capital expenditure, describing it as a financial imbalance that undermines development and perpetuates a cycle of borrowing. The government’s recurrent expenditure of over N14 trillion was also flagged as disproportionately high, reflecting inefficiencies in governance and the operation of an oversized bureaucracy.
Atiku expressed concerns over the proposed increase in VAT from 7.5% to 10%, calling it a regressive measure that would further burden struggling Nigerians and impede economic growth. He argued that imposing higher taxes without addressing inefficiencies in governance could worsen the cost-of-living crisis.
He urged the administration to prioritise disciplined and growth-oriented fiscal policies, focusing on reducing waste, improving efficiency in public spending, and investing in critical sectors. He called for a shift from reliance on unsustainable borrowing toward long-term reforms aimed at achieving fiscal stability and economic progress.
Atiku concluded by emphasizing the need for bold leadership to address Nigeria’s economic challenges, cautioning that the nation cannot afford to continue on its current trajectory.
