THE Minister of Finance and Coordinating Minister of the Economy, Wale Edun, stated that the Nigerian government requires additional borrowing to finance its budget, despite some Ministries, Departments, and Agencies exceeding their revenue targets.
Edun made these remarks during an interactive session with the Senate Joint Committees on Finance, National Planning, and Economic Affairs regarding the 2025-2027 Medium-Term Expenditure Framework/Fiscal Strategy Paper.
He emphasized that borrowing must be productive and efficient, contingent on Senate approval for adequate budget funding.
“While the revenue generation has been commendable, we need to improve further. In the meantime, we must borrow in a productive, effective, and sustainable manner to invest in the Nigerian economy—not just in infrastructure, but also in social services, healthcare, education, and social safety nets for the most vulnerable,” Edun stated.
Echoing this sentiment, the Minister of Budget and Economic Planning, Senator Atiku Bagudu, reminded lawmakers that the borrowing outlined in the N35.5 trillion 2024 budget primarily aims to address the N9.7 trillion deficit.
“Even though some revenue-generating agencies have surpassed their targets, the government still needs to borrow to properly fund the budget, particularly to address the deficit and support the poorest and most vulnerable,” Bagudu explained. He also mentioned a long-term development plan, Agenda 2050, which aims for a GDP per capita of $33,000.
Meanwhile, the Economic and Financial Crimes Commission (EFCC) and the Revenue Mobilization and Fiscal Commission argued that if the Federal Government is committed, borrowing to fund the budget should not be necessary.
EFCC Chairman Ola Olukoyede informed the committee that the agency has recovered over N197 billion since January 2024, suggesting that with proper collection efforts from International Oil Companies (IOCs), the government could adequately fund the budget.
Bashir Adeniyi, the Comptroller General of the Nigeria Customs Service, reported that Customs has generated N5.352 trillion in revenue, exceeding the N5.09 trillion target for the 2024 fiscal year. He projected N6.3 trillion in revenue for 2025, with a 10% increase expected for 2026 and another 10% for 2027.
The Group Chief Executive Officer of Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, noted that the company has already surpassed its N12.3 trillion revenue projection for 2024, bringing in N13.1 trillion. For the 2025 fiscal year, NNPCL anticipates remitting N23.7 trillion into the federation account.
Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), also reported that FIRS has exceeded its revenue targets across various tax categories.
On Thursday, the Senate approved President Bola Tinubu’s ₦1.77 trillion ($2.2 billion) loan request after a voice vote, following a report from the Senate Committee on Local and Foreign Debts, chaired by Senator Wammako Magatarkada (APC, Sokoto North).
This request, submitted by the President on Tuesday, is part of a new external borrowing plan aimed at partially covering the N9.7 trillion budget deficit for the 2024 fiscal year.
Tinubu’s loan request has faced criticism from some Nigerians, particularly from the opposition.
Former Vice President Atiku Abubakar labeled the request as “bone-crushing” for Nigerians, asserting that such loans do not benefit the populace.
“These loans from @officialABAT are crushing for Nigerians and exert unbearable pressure on the economy, especially when they are poorly negotiated and utilized,” Atiku expressed on his X account.
He further criticized the government’s borrowing practices, suggesting they are driven by corruption rather than genuine infrastructure and development needs, and accused the National Assembly of complicity.
