The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has emphasized the necessity for Nigeria to increase borrowing to finance its budget, even as some government agencies have surpassed their revenue targets. Edun made this statement during an interactive session of the Senate Joint Committees on Finance, National Planning, and Economic Affairs on the 2025-2027 Medium-Term Expenditure Framework/Fiscal Strategy Paper.
Edun stated that borrowing must be strategic and productive, highlighting the importance of funding infrastructure, social services, health, education, and safety nets for vulnerable populations.
“The revenue effort has been commendable but needs to improve further. In the meantime, borrowing is required to meet budgetary needs and achieve sustainable growth,” he said.
Senator Atiku Bagudu, Minister of Budget and Economic Planning, supported this position, noting that borrowing is essential to address the N9.7 trillion deficit in the N35.5 trillion 2024 budget. He cited Nigeria’s long-term Agenda 2050, which targets a GDP per capita of $33,000, as a guiding framework for economic planning.
Meanwhile, several government agencies reported exceeding their 2024 revenue targets. The Economic and Financial Crimes Commission (EFCC) recovered over N197 billion, while the Nigeria Customs Service collected N5.352 trillion, surpassing its N5.09 trillion target.
Similarly, the Nigerian National Petroleum Company Limited (NNPCL) generated N13.1 trillion, exceeding its N12.3 trillion projection for 2024. The agency aims to remit N23.7 trillion to the federation account in 2025.
The Federal Inland Revenue Service (FIRS) also reported surpassing revenue targets across multiple tax components, contributing to the government’s overall fiscal effort.
Despite these achievements, the Senate recently approved a $2.2 billion loan request from President Bola Tinubu. This external borrowing plan aims to partially fund the 2024 budget deficit and ensure the implementation of critical economic programs.
This development underscores Nigeria’s ongoing efforts to balance revenue generation with borrowing to address fiscal challenges and drive economic growth.
