Stakeholders urge holistic 2025 budget implementation

The role of the Minister of Budget and Economic Planning, Atiku Bagudu, has set the tone for the fiscal year, as stakeholders agree that the 2025 budget is an ambitious statement and urge a holistic implementation, ARINZE NWAFOR writes

Stakeholders affirm the economy’s managers need concerted efforts to implement the N54.99tn 2025 budget President Bola Tinubu recently signed to reposition the economy.

The stakeholders who spoke with The PUNCH in separate phone interviews described the budget as “ambitious.”

The budgetary breakdown shows an estimated revenue of N40.89tn and a deficit of N14.1tn, which the government hopes to cover through increased oil sales and tax collection, among other means. The PUNCH has earlier reported that stakeholders have voiced concerns about the deficit financing possibilities.

It set out key assumptions for the 2025 fiscal year, including 2.12 million barrels per day of oil production, a $75 oil price, an exchange rate of N1,500, 4.6 per cent Gross Domestic Product growth, and a 15 per cent inflation rate.

Former president of the Chartered Institute of Bankers of Nigeria, Prof Segun Ajibola, observed that the 2025 budget represented the government’s “desperate moves to reposition the economy”, and while it was ambitious, it was still achievable.

The Minister of Budget and Economic Planning, Atiku Bagudu, is tasked with stewarding the administration’s fiscal plan in the N54.99tn budget.

The Chief Executive Officer of Economic Associates, Dr Ayo Teriba, called for optimism in the ability of the executioners of the budget, stating “The Ministry of Budget and Economic Planning, the Budget Office, the National Assembly, the Presidency, Ministry of Finance, all must be given the benefit of the doubt that they must be privy to facts that we may not be privy to.

“We have no choice but to take the announcement at face value and hope that their aspirations will be realised.”

Teriba addressed his scepticism about the financing of the budget, noting, “I do not think that the government is quite up and doing in trying to look for new revenue sources and in trying to do tax reforms.

“The Minister of Finance is speaking about alternative sources of funding to shift away from debt financing. We as Nigerians have to wait and get updates from the government.”

Budget ministry overview

The Ministry of Budget and Economic Planning under Bagudu drives the economic segments of the administration’s 8-point ‘Renewed Hope Agenda,’ which includes food security, poverty eradication, economic growth, job creation, access to capital, inclusion, rule of law, and anti-corruption.

The budget ministry’s role extends beyond budget formulation to setting national economic priorities, coordinating their implementation, and ensuring budget allocations are aligned with economic recovery goals.

According to a statement, Bagudu has “in less than two years (as budget minister) worked to actualise the (President) Tinubu administration’s Renewed Hope Agenda (and) his leadership has driven fiscal efficiency and positioned Nigeria towards economic sustainability and recovery.”

He is tasked with ensuring national unity and economic stability by designing policies that promote economic inclusivity and social justice.

Also during a chat with Business Editors, the minister pointed out that the government was working hard to ensure the effective implementation of the 2025 budget, stressing that the benefits of the government’s fiscal policies were beginning to manifest.

The minister affirms that he serves to provide leadership by emphasising strategies to enhance economic resilience, especially amidst global economic challenges, ensuring the country remains a viable investment destination.

“One of Bagudu’s primary responsibilities has been aligning national budgets with Tinubu’s development strategy,” the statement read. “His leadership saw the smooth passage of the 2023 Supplementary Budgets and the 2024 fiscal estimates, securing their approval with minimal legislative resistance—a contrast to previous years.

“He has also played a crucial role in stabilising Nigeria’s budgetary framework and ensuring prudent resource allocation.”

Bagudu hails his leadership of the budget ministry for submitting the 2024 budget on time among his accomplishments. The budget was touted to “reduce the fiscal deficit, increase capital expenditure, and support vulnerable populations affected by ongoing reforms.”

The previous year’s budget initial expenditure was N28.77tn, and the notable allocations included N4.06tn for infrastructure, N3.5tn for education, and N2.4tn for healthcare, making for the highest percentage allocation to the sector since 2001.

The statement continued, “Bagudu’s fiscal strategy has also led to sustained GDP growth, exceeding three per cent for three consecutive quarters—a significant achievement compared to industrialised nations struggling with lower growth rates. Additionally, his ministry has reduced reliance on deficit financing, bringing Nigeria’s deficit-to-GDP ratio from 6.1 per cent in 2023 to under 4 per cent in 2024.”

Bagudu received praise for championing tax reforms to enhance revenue generation while reducing the burden on businesses.

Other highlights of the budget minister’s role include working closely with the National Assembly to ensure financial projections align with long-term development objectives and ensuring non-recourse to excessive borrowing.

Also, he reportedly has worked to ensure fiscal transparency, not impeding the National Bureau of Statistics’ ability to deliver timely economic data releases, spearheading the GDP rebasing exercise and launching ‘Eyemark,’ a digital platform allowing public feedback on government projects.

Budget accountability

Former CIBN president Ajibola submitted that the minister performs oversight functions assessing the budget implementation.

“The budget ministry’s public assessment platform, Eyemark, should be pursued with rigour so that accountability as far as budget implementation will be put on,” Ajibola stated. “There needs to be a way of assessing progress in ministries, departments and agencies and putting remedial plans in place to redirect the implementation modalities where benchmarks are not being met and not waste another year in post-mortem evaluation.

“However robust, realistic, desperate and ambitious those (budgetary) assumptions may be, the amount of implementation by the people in the ministry will make things happen and if they are not doing the right thing, it will be difficult.”

Also, the Director of the Centre for Promotion of Private Enterprise, Dr Muda Yusuf, called attention to financial propriety in budgetary implementation.

Yusuf hailed the budget ministry for “putting the figures together and also advising in many areas concerning economic management,” but warned that it was most important to ensure the budget ministry reduced the variance between what is appropriated and what is eventually released, especially concerning capital budgets.

“The variance is getting too wide, and I think it is something that we need to close to ensure the credibility of the budget document,” the CPPE director stressed.

“During the budget defence of many of the MDAs, they complained about poor capital budget implementation due to challenges of bureaucracy and maybe challenges of availability of funds. Whatever it is, it is important to close the gap between what is appropriated and what is eventually released and implemented as far as the capital budget is concerned.”

Yusuf added that the budget ministry needs to ensure that there is alignment between the budget, the medium-term expenditure framework, the short-term economic plan, and the long-term national economic plan.

Bagudu reported that the ministry’s citizen-engaged budget monitoring ensured accountability and optimising resource allocation; Nigerians tracked over 500 federal projects under the 2023 capital budget.

He added that the budget ministry has introduced public audits of key projects to reinforce transparency and strengthened institutions like the Fiscal Responsibility Commission and the Bureau of Public Procurement, ensuring strict compliance with financial regulations and procurement guidelines.

Prioritise agriculture, power

The former CIBN president Ajibola emphasised fiscal policy over monetary policy as the instrument to meet some of the budget’s assumptions, especially a 15 per cent inflation rate.

Ajibola highlighted the agricultural value chain, stating, “More can be done to tackle the problem of inflation in Nigeria from the fiscal side and not the monetary side. By tackling cost-induced problems to manufacturers in the industries, to agriculturists in the agricultural sector, to those who provide utilities like power.”

According to the statement, Bagudu’s leadership of the budget ministry oversaw a concession of the Cassava Bio-Ethanol Value Chain across the six geopolitical zones. Reportedly, the pilot projects have generated over 8,000 jobs.

Meanwhile, Ajibola proposed collaborative efforts from the Ministries of Budget and Economic Planning and Agriculture to focus on enabling the transportation and storage of agricultural goods.

He explained, “When farmers produce on the farm, it is not wasted there due to lack of off-takers to help them in terms of agricultural insurance. We have suffered losses from natural causes, including fire and others.

“Then we have storage. If you look at chemicals, even simple things like cutlasses and hoes’ prices have multiplied four or five times in the last three to four years. Farmers are struggling with agricultural produce and their prices to cover their costs.”

Ajibola urged granting concessions only for the importation of finished food products while addressing local farmers who need concessions on the importation of agricultural inputs.

 The budget ministry hailed itself as championing strategic investments in energy and infrastructure as critical enablers of long-term economic stability.

The ministry affirmed that it recognises the need for a reliable power supply, pointing to policies that the Federal Government has implemented to enhance renewable energy adoption and improve electricity access nationwide.

It noted that the administration continues to work on increasing crude oil production, optimising natural resource revenue, and reducing import dependency to strengthen the country’s economic resilience.

It also highlighted allocations to infrastructure development directed toward road construction, railway expansion, and housing projects, noting, “The 2025 budget aims to complete the Abuja-Kaduna railway project, rehabilitate the Itakpe-Ajaokuta rail line, and advance key highway projects like the Lagos-Calabar Coastal Highway.”

Economists Ajibola and Yusuf shared similar sentiments on infrastructure and power generation. They observed that among the problems militating against macroeconomic stability, challenges in oil and gas need to be urgently addressed.

“We need to address the restive problems in places like the Niger Delta,” Ajibola remarked. “Pipeline vandalisation and hostilities of the local communities will be addressed when you address the problems of the host communities such as in the Niger Delta.

“When we address infrastructural problems and other insecurity threatening the local communities in those places, then we will be able to sustain what has been projected as oil production of 2.12mbpd.”

On business and human capital development overview, the budget ministry referenced its role in innovating financing mechanisms, stressing it is overseeing the development of the Renewed Hope Infrastructure Fund, National Agriculture Development Fund, Consumer Credit Scheme, and Student Loans Fund, among others.

It also noted that it plays a role in emphasising geospatial analytics to improve policy planning and execution, stating, “The government can optimise resource distribution and enhance service delivery by integrating geospatial evidence into national projects. This data-driven approach ensures that investments in infrastructure and development are directed to areas where they will have the most significant impact.”

Further, the ministry stated that it is working to attract foreign direct investments into critical sectors such as energy, agriculture, and technology and to improve human capital development.

It explained, “The (budget) ministry has efficiently implemented the NG-CARES program, a World Bank-backed initiative that has impacted over seven million vulnerable households across 35 states and the Federal Capital Territory” to provide emergency relief to those affected by economic downturns.

On the competence necessary for the budget’s success, the ministry stated that fiscal reforms, innovative financing, sectoral investments, and job creation stem from the office of the budget minister. Stakeholders agree that Bagudu’s leadership is pivotal in steering the country toward economic recovery.

They called for an alignment between all critical planning instruments with prejudice towards the government’s manifesto and competence in the budgeting and implementation processes for an overall positive result.