Nigeria Needs More Borrowing – Finance Minister Edun

Nigeria Needs More Borrowing – Finance Minister Edun

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has emphasized the necessity for the Nigerian government to increase its borrowings to adequately fund the national budget, despite some Ministries, Departments, and Agencies exceeding their revenue targets. Edun made this statement during an interactive session with the Senate Joint Committees on Finance, National Planning, and Economic Affairs regarding the 2025-2027 Medium-Term Expenditure Framework and Fiscal Strategy Paper.

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During the session, Edun articulated that while revenue generation efforts have improved, further enhancement is needed alongside productive and effective borrowing to support not only infrastructure but also vital social services, including health and education. He underscored the importance of creating a social safety net for the country’s poorest and most vulnerable citizens.

In parallel, Senator Atiku Bagudu, the Minister of Budget and Economic Planning, reiterated that the borrowing outlined in the N35.5 trillion 2024 budget is essential for covering the N9.7 trillion budget deficit. He noted that despite the revenue targets being surpassed by some agencies, borrowing remains crucial for effective budget funding and addressing the needs of the disadvantaged population. Bagudu highlighted the long-term development agenda aimed at achieving a GDP per capita of $33,000 by 2050.

The session also featured contributions from the Economic and Financial Crimes Commission (EFCC) Chairman, Ola Olukoyede, who reported recovering over N197 billion since January 2024. He suggested that improved government efforts in revenue collection could provide sufficient funds for the budget.

Additionally, Bashir Adeniyi, the Comptroller General of the Nigeria Customs Service, announced that Customs had generated N5.352 trillion in revenue, exceeding their N5.09 trillion target for the 2024 fiscal year. He projected a revenue target of N6.3 trillion for 2025, with a 10% increase for 2026 and another for 2027.

Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), reported that the company had surpassed its 2024 revenue projection of N12.3 trillion, achieving N13.1 trillion. He projected that NNPCL would remit N23.7 trillion into the federation account for the 2025 fiscal year.

Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), also reported that FIRS had exceeded revenue targets across various tax components.

In related news, the Senate recently approved President Bola Tinubu’s loan request of N1.77 trillion ($2.2 billion) after a voice vote. The approval, presided over by Deputy Senate President Barau Jibrin, followed a presentation from the Senate Committee on Local and Foreign Debts, chaired by Senator Wammako Magatarkada. This loan request forms part of a broader external borrowing strategy aimed at partially addressing the N9.7 trillion budget deficit for the 2024 fiscal year.