The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has stated that the Nigerian government requires additional borrowing to finance its budget, despite some ministries, departments, and agencies exceeding their revenue targets.
Edun made this remark 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 emphasised that borrowing should be executed productively and efficiently, contingent upon the Senate’s approval for adequate budget funding.
Similarly, the Minister of Budget and Economic Planning, Senator Atiku Bagudu, pointed out that the borrowing plans outlined in the N35.5 trillion 2024 budget are primarily intended to cover the N9.7 trillion deficit.
On another note, the Economic and Financial Crimes Commission, EFCC, and the Revenue Mobilisation and Fiscal Commission, RMFC, argued that if the Federal Government is genuinely committed, there would be no need for borrowing to fund the nation’s budget.
EFCC Chairman, Ola Olukoyede, informed the committee that the commission has recovered over N197 billion since January 2024.
He noted that with diligent efforts and proper collection from international oil companies, the government could secure sufficient funds for the budget.
Additionally, the Comptroller General of the Nigeria Customs Service, Bashir Adeniyi, revealed that the Customs has generated N5.352 trillion in revenue, surpassing the N5.09 trillion target for the 2024 fiscal year.
He projected N6.3 trillion as the revenue target for 2025, with a 10 per cent increase set for 2026 and another 10 per cent increase for the 2027 fiscal year.
Recall that on Thursday, the Senate granted approval for the N1.77 trillion ($2.2 billion) loan request of President Bola Tinubu after a voice vote.
The request by the President is part of a fresh external borrowing plan to partially finance the N9.7 trillion budget deficit for the 2024 fiscal year.
However, the fresh loan request by Tinubu was met with heavy backlash from some Nigerians, especially the opposition.