Only Coordinated Action and Mass Mobilization Can the Working Class Challenge These Exploitative Policies

Lateef Adams

The 2025 budget proposal presented by President Tinubu to the National Assembly reflects a continuation of the neoliberal path of previous administrations—an approach that consistently prioritizes lofty figures over tangible outcomes. Like its predecessors, this budget fails to address the pressing needs and aspirations of ordinary Nigerians, underscoring a pattern of governance disconnected from the realities faced by the masses.

A glaring indicator of the inefficacy of this budgetary process was highlighted just hours before the budget presentation when Senate President Godswill Akpabio announced, “The federal government is set to extend the implementation of the 2024 budget till 30 June 2025.” This statement starkly illustrates the chronic inability of successive governments to achieve full implementation of annual budgets within the designated fiscal year.

Such extensions are not new. For instance, in the previous year, it was reported that the National Assembly approved an extension of the 2023 Appropriation Act and the supplementary budget of N2.17 trillion to December 31, 2024. This recurring practice of rolling over budget implementations raises serious concerns about the government’s capacity to execute its fiscal plans effectively and in a timely manner.

The implications are clear: a cycle of delays, inefficiencies, and unmet promises. The 2025 budget, like many before it, risks being an exercise in futility if these systemic issues are not addressed. Without a shift toward budgets that are not only ambitious but also realistic, transparent, and geared toward impactful implementation, the socio-economic challenges facing the average Nigerian working masses will persist.

A critical analysis of President Tinubu’s proposed 2025 budget should raise significant alarm among working Nigerians, as the economic outlook for the coming year appears even more heartbreaking than that of 2024. Despite its massive size, amounting to ₦49.7 trillion, the budget poses serious challenges that threaten to worsen the nation’s economic sufferings.

One of the most troubling aspects is the allocation of ₦15 trillion (31% of the total budget) for debt servicing. This staggering amount underscores Nigeria’s heavy dependence on borrowing to sustain its fiscal operations. Furthermore, the budget includes a deficit of ₦13 trillion, signalling the government’s intention to engage in even more borrowing to fund its programs.

The country’s escalating debt profile is a cause for concern. According to the Debt Management Office (DMO), Nigeria’s total public debt, which includes both domestic and external debts of the Federal Government, reached ₦121.67 trillion as of March 31, 2024. This marks a 24% increase compared to ₦97.34 trillion as of December 31, 2023. Such a rapid rise in debt levels reflects a persistent inability to generate sufficient revenue through production, further compounding the nation’s fiscal challenges.

The structure of the 2025 budget, shaped by a corrupt capitalist framework that heavily relies on deficit financing and substantial debt servicing, indicates that Nigeria is on a trajectory toward an even deeper debt trap. This trajectory not only compromises the nation’s financial stability but also limits its ability to invest in critical sectors such as education (with 7% of the total budget), healthcare (5%), and infrastructure (8%). For the working population, this means the likelihood of higher taxes, reduced public services, and worsening economic conditions in the coming year.

The 2025 budget bill currently before the National Assembly is likely to spark significant public debate, especially as lawmakers begin to include frivolous allocations disguised as constituency projects. A similar pattern was evident in the 2024 budget process, where the initial proposal of ₦27.5 trillion was increased to ₦28.78 trillion by the National Assembly. Subsequently, allegations emerged that lawmakers padded the budget by irregularly inserting projects worth ₦3.7 trillion. These claims were notably raised by Senator Abdul Ningi, who was later suspended from the Senate for his outspokenness on the issue.

Meanwhile, Nigerians are grappling with an ever-worsening economic crisis. Since the removal of fuel subsidies in May 2023, the inflation rate has surged to 34.6%, with food inflation exceeding 40%. Despite these alarming figures, the government has shown little interest in addressing the skyrocketing cost of petrol, leaving the working masses to bear the brunt of the crisis.

The situation is further compounded by the erosion of the purchasing power of the Nigerian workforce. The recently approved ₦70,000 minimum wage has already been rendered inadequate due to the relentless rise in inflation. To make matters worse, many states have yet to fully implement the new wage, deepening the economic hardship faced by workers across the country.

At this critical juncture, the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) must take decisive action. It is imperative for these bodies to rally rank-and-file workers to challenge the corrupt and neoliberal policies imposed by international financial institutions like the IMF and the World Bank. These policies perpetuate debt dependence, hinder genuine economic growth, and have positioned Nigeria as the poverty capital of the world.

The year 2024 has been exceptionally challenging for the Nigerian working class, marked by relentless economic hardship and a series of policy failures. The over 400% hike in petrol prices in October alone dealt a severe blow to millions of Nigerians, exacerbating an already dire situation. This sharp increase occurred against the backdrop of soaring inflation, which has rendered the cost of living unbearable for most households.

The consequences of these price hikes have rippled across the economy, driving up the cost of essential commodities and services. Transportation costs have skyrocketed to such an extent that the average Nigerian worker’s salary can no longer sustain even a week’s basic expenses. Fundamental necessities like food, healthcare, and housing have become unaffordable luxuries for many. As a result, poverty has deepened, and countless families now struggle just to afford a single meal per day.

Adding insult to injury, the 2025 budget proposal projects a decline in the inflation rate to 15% from its current 34.6%. This assumption is not only overly optimistic but also blatantly unrealistic, given the government’s track record. A similar projection was made in the previous budget, which anticipated a reduction in inflation to 21.4% from 27.33%, yet the rate instead surged to its current alarming level. This trend highlights the government’s inability—or unwillingness—to implement policies that address the root causes of inflation and economic instability.

The Tinubu administration’s economic projections appear to be little more than propaganda, designed to pacify the masses while pursuing pro-rich, capitalist programs that fail to resolve the economic contradictions faced by ordinary Nigerians. These policies prioritise the interests of elites and multinational corporations over the well-being of the majority, leaving the working class to shoulder the burden of austerity and economic mismanagement.

To counter these systemic attacks on the working people, it is imperative for the organized labour movement, led by the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC), to rise to the occasion. Only through coordinated action and mass mobilization can the working class challenge these exploitative policies and demand a budgetary framework that prioritizes their needs.

The plight of Nigerian workers underscores the urgency of systemic change. The organized labour movement must unite in demanding policies that tackle inflation, ensure fair wages, and reduce the cost of living. Without such resistance, the cycle of hardship and economic inequality will persist, further entrenching poverty among the majority.

Only through unified and proactive resistance can the working masses push back against these exploitative policies and demand a budgetary process that prioritizes the needs and welfare of ordinary Nigerians over the interests of political elites and foreign institutions.