…Spending 30% on over-bloated bureaucracy indicates lack of discipline — Atiku
…LCCI commends FG’s 2025 budget plan, cautions against late implementation
By Seun Ibiyemi and Sodiq Adelakun
The Socio-Economic Rights and Accountability Project (SERAP) has called for significant reductions in Nigeria’s 2025 budget allocations for both the Presidency and lawmakers.
In a statement, SERAP demanded cuts to the N9.4 billion set aside for presidential travel and meals, as well as the N344 billion proposed for the National Assembly’s operations.
Recall that the budget was presented on Wednesday, and the Senate passed the N49.7tn ‘Restoration’ Budget for a second reading on Thursday after various deliberations.
SERAP’s demands made public in a letter dated 21 December 2024 but released on Sunday, highlight the N9.4 billion earmarked for travel, meals, and catering for the presidency, alongside the proposed N344.85 billion for lawmakers in the 2025 budget.
SERAP insists these figures reflect unnecessary spending that could be redirected to address Nigeria’s growing budget deficit and improve public services.
The agency’s Deputy Director, Kolawole Oluwadare, expressed the organisation’s concerns, stating: “Any proposed unnecessary spending by the presidency and the National Assembly would amount to a fundamental breach of the Nigerian Constitution 1999 [as amended].
“The proposed huge spending is neither necessary nor in the public interest, especially given the country’s dire economic situation and the level of proposed borrowing to fund the 2025 budget.”
The organisation urged Akpabio and Abbas to request President Bola Tinubu to present a revised supplementary appropriation bill reflecting reduced budgets for the presidency and the National Assembly.
SERAP further called on the National Assembly to disclose the breakdown of the proposed budget publicly, pressing lawmakers to commit to reducing the N344.85 billion allocated for 2025.
Among the notable concerns is the sharp increase in allocations for asset rehabilitation and repairs. While N14 billion was allocated for these purposes in 2024, the 2025 budget proposes N26 billion — an increase of N12 billion.
SERAP also flagged excessive allocations for travel expenses, revealing that the presidency plans to spend N8.74 billion on local and international trips by Tinubu and Vice President Kashim Shettima.
“The Office of the President proposes N7.01 billion for travel and transport expenses, including N873.8 million for local travel and N6.14 billion for international travel,” the letter disclosed.
The agency noted that Shettima’s travel budget alone stands at N1.73 billion.
In addition, the presidency’s catering budget raises eyebrows, with N546 million allocated for foodstuffs and N71 million for refreshments and meals.
“Many Nigerians will find it quite odd, unfair, and unjust that the government and lawmakers are spending so much on these items in the middle of a public borrowing crisis,” Oluwadare noted.
SERAP also called for greater scrutiny of the National Assembly’s N344.85 billion budget, including salaries, allowances, and personnel costs.
“The National Assembly appears to budget the same amounts year after year for identical items, which raises questions about accountability and fiscal responsibility,” the letter highlighted.
Moreover, SERAP pressed the National Assembly to hold corrupt ministries, departments, and agencies accountable, urging lawmakers to investigate mismanagement and misappropriation of public funds.
Should the National Assembly fail to act on these recommendations, SERAP has vowed to pursue legal action.
“We would consider appropriate legal measures to compel the National Assembly to fulfil its constitutional oversight duties,” Oluwadare warned.
“Section 14(2)(b) of the Nigerian Constitution 1999 [as amended] stipulates that the security and welfare of the people shall be the primary purpose of government,” the letter stressed.
…LCCI commends FG’s 2025 budget plan, cautions against late implementation
Meanwhile, the Lagos Chamber of Commerce and Industry (LCCI) has commended the federal government’s 2025 budget plan for paying attention to key priority areas to drive macroeconomic stability and inclusive growth.
In a communique made available to newsmen, Director General of the LCCI, Chinyere Almona commended the swift presentation of the 2025 national budget, themed, ‘Budget of Restoration: Securing Peace, Rebuilding Prosperity’.
She applauded the attention paid to key priorities, including security, infrastructure, education, health, and agriculture, which focused on achieving macroeconomic stability and inclusive growth.
However, Almona expressed concern about Nigeria’s tax-GDP ratio, which is one of the lowest globally.
“To meet the ambitious N34.82 trillion revenue projection, the LCCI underscores the urgency of improving Nigeria’s tax-to-GDP ratio, one of the lowest globally,” she stated
“Accelerating tax reforms, simplifying processes, and incorporating the informal sector are essential. Leveraging technology to expand the tax net, minimise leakages, and foster transparency will be critical,” Almona added.
She also called for the scrutinisation of the 2024 budget that was extended to June 2025 as announced Tuesday by Godswill Akpabio, president of the Senate of Nigeria.
“Beyond the figures and assumptions, budget implementation is the key performance driver. The 2024 budget implementation cycle extension to June 2025 should be closely watched to avoid such in the future as it can signal weak budget execution,” she said.
“While we call on the National Assembly to expedite action on the appropriation debates, we are concerned that much-needed scrutiny and consultations on the budget may not be possible if the January-December budget cycle is to be maintained,” she added.
She maintained that avoidable delays in budget preparation and approvals may stress the 2025 budget implementation expected to start in January.
According to Almona, leveraging technology to expand the tax net, minimise leakages, and foster transparency will be critical.
Also, fiscal discipline must complement these efforts to effectively manage the N15.81 trillion debt servicing allocation.
She noted that prioritising high-impact, self-sustaining projects and exploring alternative funding mechanisms, such as public-private partnerships, are crucial to keeping debts within sustainable limits.
Almona pointed out that addressing food and energy supply chain bottlenecks, fast-tracking local petroleum production projects, and fostering alignment between monetary and fiscal policies will restore confidence in the naira and ease inflationary pressures.
“The allocation of N4.91 trillion for defence is commendable compared to previous allocations in recent years,” she remarked.
She however urged that funding must be complemented with enhanced intelligence, surveillance technology, and simultaneous investment in poverty reduction and youth empowerment, both of which are drivers of insecurity and criminality in the country.
…Spending 30% on over-bloated bureaucracy indicates lack of discipline – Atiku
Also, former Vice President Atiku Abubakar has called on President Bola Tinubu administration to review the size of the civil service, describing the 30% allocated to recurrent expenditure in the 2025 budget, as clear lack of fiscal discipline
Abubakar in his reaction to the 2025 Appropriation Bill presented to the National Assembly last Wednesday, said that the 2025 budget’s capacity to foster sustainable economic growth and tackle Nigeria’s deep-rooted challenges is questionable, given key indicators.
He described the budget as unsustainable, as “Government’s recurrent expenditure remains disproportionately high, with over N14 trillion (30% of the budget) allocated to operating an oversized bureaucracy and supporting inefficient public enterprises.”
He therefore, advised President Tinubu to enhance the budget’s credibility by prioritising 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 towards a more disciplined and growth-oriented fiscal policy is essential for the nation’s economic recovery,” he said
The former Vice President also noted that the budget did not provide for “concrete steps to curb wastage and enhance the efficiency of public spending exacerbating the fiscal challenges, leaving limited resources for development.”
He also expressed concerns over the poor allocation of resources to fund capital components, as he noted that “after accounting for debt servicing and recurrent expenditure, the remaining allocation for capital spending, ranging from 25% to 34% of the total budget, is insufficient to address Nigeria’s infrastructure deficit and stimulate growth.
“This equates to an average capital allocation of approximately N80,000 (US$45) per capita, insufficient to meet the demands of a nation grappling with slow growth and infrastructural underdevelopment.”
President Tinubu had proposed a budget of N49.7trillion with a revenue forecast of N35 trillion, resulting in a deficit exceeding N13 trillion or 4% of GDP reflecting a continuation of business-as-usual fiscal practices.
The Peoples Democratic Party (PDP) Presidential candidate in the 2023 election, said the budget represents a persistent trend under the APC-led administration since 2016, wherein budget deficits have been consistently presented, accompanied by an increasing reliance on external borrowing.
To bridge this fiscal gap, the administration plans to secure over N13 trillion in new borrowings, including N9 trillion in direct borrowings and N4 trillion in project-specific loans.
According to him, “This borrowing strategy mirrors the approach of previous administrations, resulting in rising public debt and exacerbating the attendant risks related to interest payments and foreign exchange exposure.”
Abubakar also linked the current economic challenges to what he described as the weak foundation in the 2024 budget.
“The 2024 budget’s underperformance signals poor budgetary execution. By Q3 of the fiscal year, less than 35% of the allocated capital expenditure for MDAs had been disbursed, despite claims of 85% budget execution. This underperformance in capital spending, crucial for fostering economic transformation, raises concerns about the execution of the 2025 budget.”
Abubakar also berated the disproportionate Debt servicing, which accounts for N15.8 trillion (33% of the total expenditure), saying that this is nearly equal to planned capital expenditure (N16 trillion, or 34%).
“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.
“Regressive Taxation and Economic Strain: 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.”
He noted that the 2025 budget lacks the structural reforms and fiscal discipline required to address Nigeria’s multifaceted economic challenges.