NESG Flags 2025 Budget as Grossly Inadequate for Nigeria’s Social and Infrastructure Needs
The Nigerian Economic Summit Group (NESG) has raised concerns about the 2025 federal budget, stating it remains insufficient to address Nigeria’s critical social and infrastructure demands despite increased overall spending.
Budget Analysis Reveals Critical Gaps
In its report titled “2025 FGN Budget Analysis: Can The Budget Deliver a Major Economic Boost”, the NESG highlighted that public investment continues to be treated as a “residual budget item”, receiving only leftover funds after recurrent expenditures are covered.
The Group noted this approach consistently disrupts the execution of multi-year infrastructure and social development programs across the country.
Budget Allocation Breakdown
The 2025 budget of N54.99 trillion allocates:
- 50.8% (N27.96 trillion) to recurrent spending (including debt servicing)
- 49.2% to capital expenditure (covering public investments and social infrastructure)
Human Capital Investment Concerns
The NESG described the capital expenditure share as “commendable” historically but stressed the absolute figures remain too small to address Nigeria’s infrastructure deficit.
Key sector allocations reveal concerning trends:
- Health services: N2.38 trillion (US$1.49 billion)
- Education services: Less than N2.59 trillion (US$1.62 billion)
Per Capita Spending Comparison
With a population of 230 million, Nigeria’s 2025 budget translates to:
- N239,087 (US$159.4) per capita annually
- Significantly lower than South Africa’s US$1,957 per capita
- Below the US$800 average among peer countries
Long-Term Economic Implications
The NESG warned that underfunding critical sectors could adversely affect:
- Economic competitiveness
- Human capital development
- Poverty reduction efforts
“These figures indicate that Nigeria’s budgetary provisions are grossly inadequate to address pressing social and infrastructure needs,” the Group stated.
Why This Matters
Without significant increases in capital and social sector investments, Nigeria risks:
- Slower economic growth
- Worsening poverty levels
- Declining global competitiveness
Full credit to the original publisher: Nairametrics