The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has stated that the Nigerian government still requires additional borrowing to fund its budget, despite some Ministries, Departments, and Agencies (MDAs) exceeding their revenue targets.
Edun made this comment 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 explained that while revenue collection efforts have been commendable, further improvement is needed. He emphasized that borrowing is essential for sustainable investment in the Nigerian economy, not only for infrastructure but also for social services such as health, education, and social safety nets to support the poorest and most vulnerable populations. He stressed that borrowing must be productive, effective, and sustainable, with the Senate’s approval ensuring proper budget funding.
Similarly, the Minister of Budget and Economic Planning, Senator Atiku Bagudu, reiterated that the borrowing plans in the N35.5 trillion 2024 budget are primarily aimed at addressing the N9.7 trillion deficit. Despite some revenue-generating agencies surpassing their targets, Bagudu emphasized that borrowing is still necessary for proper budget funding, especially for deficit reduction and productivity, with a long-term goal of achieving a GDP per capita of $33,000 by 2050.
However, the Economic and Financial Crimes Commission (EFCC) and the Revenue Mobilization and Fiscal Commission (RMFC) argue that if the government prioritizes efficiency, borrowing may not be necessary. EFCC Chairman, Ola Olukoyede, reported that the EFCC had recovered over N197 billion since January 2024. He suggested that if the government optimizes revenue collection from international oil companies (IOCs), there would be enough funds to cover the budget.
The Comptroller General of the Nigeria Customs Service, Bashir Adeniyi, disclosed that Customs had generated N5.352 trillion in revenue, exceeding its N5.09 trillion target for 2024. He also projected a revenue target of N6.3 trillion for 2025, with annual 10% increases for 2026 and 2027.
Mele Kyari, Group CEO of the Nigerian National Petroleum Company Limited (NNPCL), reported that NNPCL had exceeded its 2024 revenue target of N12.3 trillion, having already generated N13.1 trillion. For 2025, NNPCL projects a contribution of N23.7 trillion to the federation account.
Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), also informed the committees that FIRS had surpassed its revenue targets across various tax components.
Meanwhile, on Thursday, the Senate approved a ₦1.77 trillion ($2.2 billion) loan request from President Bola Tinubu after a voice vote. The Senate, presided over by Deputy Senate President Barau Jibrin, approved the loan following a report from the Senate Committee on Local and Foreign Debts, chaired by Senator Wammako Magatarkada (APC, Sokoto North). The loan is part of the government’s external borrowing plan to help finance the N9.7 trillion deficit in the 2024 fiscal year budget.
