After thorough dissection of the 2025 budget proposal, a herd of finance and economic experts have expressed concern that due to policy mismatch, the below-average performance of the 2024 budget, and a rising debt profile, among other reasons, the ambitious budget would, as usual, be unrealistic. The federal government, being the major borrower, will continue to crowd out private sector investment.
Analysts from a Lagos-based investment banking firm, Affrinvest (West) Africa Limited, raised concerns about the 2025-2027 Medium Term Expenditure Framework (MTEF).
According to the analysts in an emailed response to the Nigerian Tribune, capital expenditure will suffer as usual because actual CAPEX implementation has fallen short of 80.0 percent in the last nine years, and there is a decline in allocation from 42.3 percent in 2024 to 34.4 percent of the total budget in 2025.
They also highlighted that 56.3 percent of the projected revenue expected from oil is built on overly bullish…