Kehinde Fajobi
The Nigerian government will require additional borrowing to finance its budget, despite some Ministries, Departments, and Agencies (MDAs) surpassing their revenue targets.
This was disclosed by Wale Edun, Minister of Finance and Coordinating Minister of the Economy.
Edun made the statement during an interactive session with the Senate Joint Committees on Finance and National Planning and Economic Affairs regarding the 2025-2027 Medium-Term Expenditure Framework/Fiscal Strategy Paper.
He stated, “Borrowing needs to be done productively and efficiently, based on the Senate’s approval, for proper funding of the budget.”
Supporting this stance, Minister of Budget and Economic Planning, Senator Atiku Bagudu, noted that borrowing plans in the N35.5 trillion 2024 budget are primarily aimed at covering the ₦9.7 trillion deficit.
However, agencies like the Economic and Financial Crimes Commission (EFCC) and the Revenue Mobilisation and Fiscal Commission argue that Nigeria could avoid borrowing if revenue collection efforts improve.
EFCC Chairman, Ola Olukoyede, informed the committee that the agency had recovered over ₦197 billion since January 2024.
“If the government works hard and ensures requisite collections, especially from International Oil Companies (IOCs), there would be no need to borrow to fund the budget,” he said.
Similarly, Comptroller General of the Nigeria Customs Service, Bashir Adeniyi, revealed that the agency had collected ₦5.352 trillion in revenue for 2024, exceeding its ₦5.09 trillion target.
Adeniyi projected a revenue target of ₦6.3 trillion for 2025, with a 10% annual increase expected for 2026 and 2027.
NNPCL’s Group Chief Executive Officer, Mele Kyari, also announced that the company surpassed its ₦12.3 trillion revenue projection for 2024, generating ₦13.1 trillion so far.
“For the 2025 fiscal year, NNPCL projects ₦23.7 trillion in revenue to be remitted into the federation account,” Kyari added.
Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, highlighted that the agency had exceeded its tax revenue targets across various components.
Recall that last Thursday, the Senate approved President Bola Tinubu’s ₦1.77 trillion ($2.2 billion) loan request through a voice vote.
This loan, part of a new external borrowing plan, is intended to partially finance the 2024 budget deficit.
Deputy Senate President Barau Jibrin presided over the approval after the Senate Committee on Local and Foreign Debts, led by Senator Wammako Magatarkada, presented its report.
The new loan request has drawn criticism, particularly from opposition figures.
Former Vice President Atiku Abubakar described the move as “bone-crushing” for Nigerians.
“These @officialABAT’s loans are bone-crushing to Nigerians and bringing insufferable pressure on the economy, especially when they are not properly negotiated and utilized,” Atiku wrote on X (formerly Twitter) on Thursday.
He further alleged that the loans are driven by corruption rather than infrastructure or developmental needs.
Referencing a report by BudgIT, a budget transparency organisation, he claimed the 2024 budget was riddled with inefficiencies.
Atiku also accused the National Assembly of being “an accomplice once more” in enabling excessive borrowing.