Tinubu’s 2025 Budget Proposal: Impact on Nigerians
President Bola Tinubu’s proposed 2025 budget, tagged the “Budget of Restoration,” has caused debate as the National Assembly begins its review. The budget, valued at 49.7 trillion naira, aims to address critical national challenges by focusing on security, infrastructure, and economic stability. However, its potential impact on the average Nigerian raises pressing questions.
Economic Realities
The budget projects government revenue at 34.8 trillion naira, leaving a significant deficit of 13 trillion naira, with debt servicing costs pegged at 15.8 trillion naira—surpassing capital expenditures. For the average Nigerian, this means a growing concern about how the deficit and borrowing will impact public services and the economy. Inflation, already high at 25-26%, is unlikely to ease, further straining household budgets.
The federal government plans to fund critical sectors, with 4.9 trillion naira allocated to defense and security and 4.06 trillion naira to infrastructure. If well implemented, these investments could enhance public safety and improve roads, bridges, and energy systems. However, the question remains whether such investments will directly translate into better living conditions or if inefficiencies and corruption will hinder progress.
Tax and Revenue Reforms
With a low tax-to-GDP ratio of 10.9%, the government has signaled intentions to broaden its tax base. While this could boost revenue, increased taxation might disproportionately burden middle- and low-income earners, reducing disposable income and limiting consumer spending. Citizens may also see increased prices for goods and services as businesses adjust to tax reforms.
To lessen dependency on oil revenue, the government has been urged to explore non-oil revenue sources and improve the performance of state-owned enterprises. Success in these areas could lead to more stable economic growth, which may benefit citizens in the long term.
Key Concerns
Many Nigerians remain skeptical about the realism of the budget’s projections, particularly the estimated crude oil production of 2.06 million barrels per day at $75 per barrel. With global oil markets fluctuating and operational inefficiencies in the oil sector, achieving these targets may be challenging. This could result in further borrowing, exacerbating the country’s debt burden.
Citizen Impact
For the average Nigerian, the immediate effects of this budget are mixed. On one hand, improved funding for infrastructure and security could foster economic opportunities and enhance quality of life. On the other hand, the high cost of debt servicing and inflation will likely continue to erode purchasing power, leaving many struggling to afford basic necessities.
As the government emphasizes inclusive growth and poverty reduction, Nigerians hope to see tangible benefits, such as improved public services, better healthcare, and educational opportunities. However, achieving these goals will depend on the government’s ability to implement policies effectively, curb waste, and ensure accountability.
President Tinubu’s 2025 budget is ambitious. It focus on restoration and prosperity is commendable, the high deficit, debt servicing costs, and inflationary pressures cast doubt on its immediate impact on citizens. For Nigerians, the true test will be whether the promises of the “Budget of Restoration” translate into real improvements in their everyday lives.
Ubong Usoro
