The Federal Government has justified its continued borrowing to address budget deficits, despite several revenue-generating agencies surpassing their 2024 targets.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and Minister of Budget and Economic Planning, Atiku Bagudu, defended the borrowing stance during a session with the National Assembly’s Joint Committee on Finance, Budget, and National Planning in Abuja. The meeting focused on the 2025–2027 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).
Last week, the National Assembly approved President Bola Ahmed Tinubu’s request to secure a $2.2 billion loan to partly fund the N9.7 trillion budget deficit for 2024.
During the session, top officials, including the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari; Comptroller-General of Nigeria Customs Service (NCS), Bashir Adeniyi; and Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, highlighted their revenue performance.
Adeniyi revealed that by September 30, 2024, the Customs Service had collected N5.352 trillion, exceeding its annual target of N5.09 trillion. He projected a revenue target of N6.3 trillion for 2025, with a further 10% increase anticipated for 2026.
Kyari stated that the NNPCL had already surpassed its N12.3 trillion revenue target for 2024 by generating N13.1 trillion. For 2025, the company aims to remit N23.7 trillion to the Federation Account.
Adedeji reported that the FIRS achieved remarkable results, surpassing its company income tax target of N4 trillion by collecting N5.7 trillion. Similarly, education tax revenue far exceeded expectations, with N1.5 trillion collected against a target of N70 billion. Overall, he noted that N18.5 trillion had been realized by the end of September 2024, out of a projected N19.4 trillion for the fiscal year.
Despite these impressive figures, the Joint Committee, led by Senator Sani Musa (APC, Niger East), questioned why the government continued to seek loans.
Responding, Adedeji clarified that borrowing provisions were already incorporated into the Appropriation Act. Bagudu added, “Even with revenue targets exceeded, borrowing remains crucial to address budget deficits and ensure funding for critical productivity and social welfare programs, especially for the poorest and most vulnerable.”
Bagudu also highlighted the government’s long-term development agenda, Vision 2050, which aims to achieve a GDP per capita of $33,000.
Edun echoed this position, emphasizing the necessity of borrowing for comprehensive budget implementation.
Meanwhile, Senator Sani Musa directed the Nigerian Immigration Service to submit all documentation regarding what he termed an “unacceptable PPP arrangement” before the end of the week.
The session underscores the government’s stance on borrowing as a strategic approach to balancing its fiscal responsibilities despite record-breaking revenue performances.
