Nigeria’s 2025 budget per capita is $0.63, significantly under the $2.15 extreme poverty line. With 129 million people in poverty, the federal budget is $0.43 and state budget $0.21 per person. Total spending showcases a major increase, but challenges like debt servicing may hinder impactful improvements.
Nigeria’s 2025 combined federal and state budget, calculated on a per capita basis, amounts to just $0.63, considerably below the World Bank’s extreme poverty threshold of $2.15 per day. This situation is alarming for a nation that has an estimated 129 million people living in poverty, second only to India in terms of population and poverty levels.
According to a report from Analysts Data Services and Resources (ADSR), the federal per capita budget stands at $0.43, while the state budget is even lower at $0.21. This decline from the previous year’s budget figures of $0.56 and $0.36 reflects severe foreign exchange pressures impacting budget allocation per individual.
ADSR highlighted that “the daily budget per person at all levels… is far below the poverty line of $2.15,” underscoring the inadequacy of financial resources available for essentials like food, healthcare, and education. In Nigerian naira, the annual per capita budget has also fallen to N348,481.
When evaluated in naira, the federal budget per citizen is N235,706, equating to an average daily allocation of N645.8, while the state budget per head is N115,500, or N317 daily. Cumulatively, if the national budget were to be evenly distributed, each citizen would receive N348,481 per year, translating to N955 daily.
In total, the approved national budget for 2025 is N81.3 trillion, comprising N54.99 trillion from the federal government and N26.30 trillion from the states. This shows a significant 51.9% increase compared to the previous year, with the federal budget rising by 56.9% and state budgets by 42.4%.
Analysts attribute the substantial budget increases to various economic factors, including the rise in minimum wage and necessary investments in infrastructure and key economic sectors. However, there are concerns regarding whether the additional N700 billion in budget allocation will lead to meaningful improvements, especially given the challenges posed by escalating debt servicing obligations.
In conclusion, Nigeria’s projected budget for 2025 is woefully inadequate at $0.63 per person, far below the critical poverty line of $2.15. Despite a notable increase in the overall budget, the allocation per individual remains low, raising serious concerns about funding for essential services. As Nigeria grapples with high poverty levels, the effectiveness of the increased budget in addressing economic needs remains uncertain amidst significant debt pressures.
Original Source: businessday.ng
