The Chancellor of the Exchequer and Coordinating Minister for the Economy, Wale Edun, has stated that the Nigerian government requires additional borrowing to fund its budget, even though some Ministries, Departments, and Agencies have exceeded their revenue targets.
Edun made these remarks during an interactive session of the Senate Joint Committees on Finance, National Planning, and Economic Affairs concerning the 2025–2027 Medium-Term Expenditure Framework and Fiscal Strategy Paper.
According to him, any borrowing must be conducted productively and efficiently, with the Senate’s approval, to ensure the budget is properly funded.
“The revenue effort has been commendable, but more must be done. In the meantime, we still need to borrow in a productive, effective, and sustainable manner, with the aim of investing in the Nigerian economy.
“Not only in infrastructure but also in social services such as health, education, and social safety nets to support the poorest and most vulnerable,” Edun said.
Similarly, the Minister for Budget and Economic Planning, Senator Atiku Bagudu, reminded lawmakers that the borrowing plans outlined in the ₦35.5 trillion 2024 budget are primarily intended to address the ₦9.7 trillion deficit.
“Although some revenue-generating agencies have surpassed their targets, the government still requires borrowing to adequately fund the budget, particularly in addressing the deficit and ensuring productivity for the most vulnerable.
“We have a long-term development agenda, Vision 2050, aiming for a GDP per capita of $33,000,” Bagudu explained.
Meanwhile, the Economic and Financial Crimes Commission (EFCC) and the Revenue Mobilisation and Fiscal Commission maintain that, with serious effort, the Federal Government could avoid borrowing to fund the nation’s budget.
The Chairman of the EFCC, Ola Olukoyede, informed the committee that the commission had recovered over ₦197 billion since January 2024. He noted that if the government maximises collections from International Oil Companies (IOCs), there would be sufficient funds to finance the budget.
The Comptroller General of the Nigeria Customs Service, Bashir Adeniyi, reported that Customs generated ₦5.352 trillion in revenue, surpassing its ₦5.09 trillion target for the 2024 fiscal year. He added that ₦6.3 trillion is projected for 2025, with 10% annual increases for 2026 and 2027.
Mele Kyari, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), stated that the company had already surpassed its ₦12.3 trillion revenue target for 2024, having generated ₦13.1 trillion. For 2025, the NNPCL projects remitting ₦23.7 trillion to the federation account.
Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), also reported that FIRS had exceeded its revenue targets across various tax components.
On Thursday, the Senate approved President Bola Tinubu’s ₦1.77 trillion ($2.2 billion) loan request via a voice vote.
The approval, granted during a session presided over by Deputy Senate President Barau Jibrin, followed a report from the Senate Committee on Local and Foreign Debts, chaired by Senator Wammako Magatarkada (APC, Sokoto North). The loan is part of a new external borrowing plan to partially finance the ₦9.7 trillion budget deficit for 2024.
The new loan request has drawn criticism, particularly from the opposition. Former Vice President Atiku Abubakar described it as “bone-crushing” for Nigerians.
“These loans by @officialABAT are bone-crushing for Nigerians, exerting insufferable pressure on the economy, especially as they are neither properly negotiated nor utilised,” Atiku wrote on X (formerly Twitter) on Thursday.
“It is concerning that this insatiable appetite for massive loans is driven by corruption rather than genuine infrastructure and development needs. A report by BudgIT, a budget watchdog, has revealed that the 2024 budget is riddled with pork-barrel allocations,” he added.
Atiku also accused the National Assembly of being complicit in approving these loans.