Speaker Abbas to Tinubu: Your reforms have disrupted status quo
Speaker of the House of Representatives, Tajudeen Abbas, yesterday, said the bold steps taken by President Bola Ahmed Tinubu to reposition the Nigerian economy have no doubt disrupted the status quo in the country, sparking strong resistance from vested interests.
Speaking during the presentation of the 2025 Budget estimate to a joint session of the National Assembly, the Speaker said the reforms which have begun to yield positive results are a clear indication of the President’s resolve to prioritise the welfare of Nigerians.
The Speaker, however, said while the reforms are yielding results, the current fiscal realities need critical reflections, saying despite being Africa’s most populous nation with over 220 million people, the 2024 national budget of $36.7 billion remains modest compared to countries like South Africa, with a budget of $160 billion for its 60 million citizens; Egypt, with $110 billion for 110 million people; Algeria, with $60 billion for 45 million people; and Morocco, allocating $50 billion for its 37 million residents.
“Indeed, Nigeria’s low tax revenue also remains a major constraint. Our tax-to-GDP ratio, currently at approximately 10.9 per cent for 2024, is among the lowest in Africa, significantly below the continental average of 15.6 per cent.
“In comparison, South Africa’s tax-to-GDP ratio stands at 25.4 per cent, while Rwanda and Ghana, with much smaller populations, report ratios of 15.1 per cent and 14.1 per cent, respectively.
“Even our Value Added Tax (VAT) collection efficiency – at approximately 20 per cent – is notably below the near 70 per cent efficiency achieved by South Africa, Equatorial Guinea, and Zambia”.
The Speaker said “over the past 18 months, your administration has taken bold and decisive steps to reform our economy. The removal of fuel subsidies, unification of foreign exchange rates, and introduction of innovative economic policies have laid a solid foundation for sustainable growth and development.
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“While these reforms have demanded short-term sacrifices, they are acts of courage and patriotism. History teaches us that transformative progress often begins with difficult decisions. Examples from China’s market reforms, India’s liberalisation, and South Korea’s industrialisation affirm the enduring benefits of such bold action.
“These lessons inspire confidence that Nigeria’s ongoing reforms will foster economic growth, reduce poverty, and ensure long-term prosperity.
“Your administration’s reforms have disrupted the status quo, sparking resistance from vested interests. Yet, these courageous measures underscore your resolve to prioritise the welfare of Nigerians.
“The National Assembly stands ready to support these reforms through legislative backing and to facilitate public engagement for greater understanding and acceptance. Collaboration between all arms of government remains essential to achieving our shared objectives.”
The Speaker said 2024 has been a year of mixed economic fortunes with the National Bureau of Statistics (NBS) reporting a GDP growth of 3.46 per cent in the third quarter, up from 3.19 per cent in the second quarter, largely driven by the services sector.
He said despite challenges posed by climate change and insecurity, agriculture remained a critical contributor, accounting for 17.22 per cent of nominal GDP in the first quarter and 22.61 per cent in the second quarter.
However, inflation, rising to 33.88 per cent in October, alongside escalating food and energy costs, continues to strain households across the country. “Nonetheless, the International Monetary Fund’s projection of 3.2 per cent growth for 2025 underscores a positive trajectory if reforms are sustained and structural issues addressed,” he said.
Abbas said the President’s international engagements have further reinforced Nigeria’s global standing, adding that the agreements from the September 2024 visit to China are set to transform rail transport, enhance digital literacy, boost agriculture, and strengthen national security while elevating Nigeria-China relations to a comprehensive strategic partnership.
He said further that his engagements in France similarly secured €300 million for critical sectors, while Brazil’s $4.2 billion grant to strengthen agriculture underscores the president’s focus on sustainable growth.
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Speaker Abbas commended the government for its remarkable achievements in advancing local government autonomy, ensuring that resources reach grassroots communities and empowering them to address their specific needs, saying this commitment to transparency and accountability will have a lasting impact, particularly on rural communities.
He commended the proposed 2025 budget of N49.7 trillion, adding that the projections of 4.6 per cent GDP growth, a crude oil price of $75 per barrel, an exchange rate of N1,400 to the dollar, and oil production of 2.06 million barrels per day are bold but achievable.
The Speaker said: “Addressing these challenges requires urgent and comprehensive tax reforms to broaden our tax base, improve compliance, streamline administration and reduce reliance on borrowing. The National Assembly will continue to work with your administration to ensure that such reforms are equitable, effective, and considerate of the needs of vulnerable populations.
“To this end, we have engaged stakeholders to address concerns raised on the tax reform bills, fostering trust and cooperation. I have personally led numerous high-level meetings and consultations with state governors and other key stakeholders on this issue, achieving positive outcomes.
“As we approach 2025, we must embrace the realities before us with determination. Stabilising prices, boosting agricultural productivity, expanding infrastructure, and investing in education, healthcare, and security remain priorities. To strengthen national unity and build trust, it is essential for the government to communicate its achievements effectively to the Nigerian people.”
He assured the President that the National Assembly is fully committed to supporting the successful implementation of the 2025 budget, saying “this is not merely your budget; it is a national project requiring collaboration across all arms of government.
“We will work to ensure its timely passage, provide legislative support for critical reforms, and conduct robust oversight to guarantee transparency and efficiency in its execution.
“Let us take a moment to recognise and honour the profound sacrifices made by each and every Nigerian over the past year. The removal of fuel subsidies, rising inflation, and adjustments to economic policies have created challenges. Yet these sacrifices are necessary for building a stronger, self-reliant, and prosperous nation.
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“I call on all Nigerians to remain resilient and united in our collective pursuit of a brighter and better Nigeria.”
Reps express satisfaction with N49.7tr 2025 budget
Meanwhile, some members of the House of Representatives have expressed satisfaction with the 2025 Appropriation Bill of N47.9 trillion presented to the joint session of the National Assembly by President Bola Tinubu on Wednesday.
In the 2025 budget, the sum of N4.90 trillion was allocated to Defence, N4.06 trillion to infrastructure, N2.48 trillion to health and N3.52 trillion to education, among others.
The lawmakers, in their separate reactions after the presentation of the budget, described the budget as a ‘huge improvement’ on the 2024 budget.
The Chairman, House of Representatives Committee on Defence, Rep. Benson Babajimi (APC-Lagos), said that if well-implemented, the budget would meet the expectations of Nigerians.
“It’s very ambitious, a huge improvement from last year’s budget. It shows the president is bold and is a reformist.
“He wants to connect Nigeria with rail and roads; the Sokoto-Badagry expressway project is a game changer; that of Lagos-Calabar is a game changer as well.
“There is a huge improvement in security, budget, health and education. That shows somebody who has a mission and a vision. The renewed hope infrastructure fund he spoke about also will take us to the next level.
“So, we believe that it is a good budget, and he has prayed for cooperation from the national assembly.
“To ensure that, the Senate President, Godswill Akpabio, has emphatically said that we will ensure that the budget is ruthlessly implemented; so we are hoping for a renewal of hope in 2025,” he said.
Rep. Abubakar Fulata (APC-Jigawa) also said that all the assumptions in the budget were very satisfactory, except a few areas.
Fulata said the over 15 trillion set aside for debt servicing out of the entire sum was not very impressive.
He stated that the current price of crude oil was hovering between $73 and $74 per barrel, with the budget predicated on $15 dollars per barrel.
“Already, we have a deficit of about $1.5 in each barrel. So, I hope that we will be able to raise the money we are expecting to realise.
“We also hope that there will be peace in the Niger Delta so that we will be able to get the 2.06 million barrels per day,” he said.
On his part, Rep. Idem Unyime (PDP-Akwa Ibom) said that the January to December budget circle would not be realised.
He said though the budget was presented within the stipulated time, the assembly could only consider it after the Christmas holidays.
Unyime, however, said the assembly would work on the budget and ensure its passage before the end of January 2025
Speaker Abbas to Tinubu: Your reforms have disrupted status quo
