Edun: More Borrowing Needed Despite Revenue Gains by Some Agencies
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has emphasized the need for Nigeria to borrow further to fund its budget, despite some Ministries, Departments, and Agencies (MDAs) exceeding their revenue targets.
Edun made this assertion during a session with the Senate Joint Committees on Finance, National Planning, and Economic Affairs regarding the 2025-2027 Medium-Term Expenditure Framework and Fiscal Strategy Paper.
“The revenue effort has been commendable, but there’s more work to be done,” Edun explained. “In the meantime, we must borrow productively, efficiently, and sustainably to invest in the Nigerian economy—not just in infrastructure but also in social services, health, education, and safety nets to support the poorest and most vulnerable.”
Minister of Budget and Economic Planning, Senator Atiku Bagudu, echoed Edun’s stance, highlighting the necessity of the borrowing plans in the ₦35.5 trillion 2024 budget, primarily to fund the ₦9.7 trillion deficit.
“Despite improved revenue performance by some agencies, borrowing remains essential for funding the budget deficit and boosting productivity, especially for vulnerable populations,” Bagudu noted. He also referenced the government’s long-term Agenda 2050, which aims for a GDP per capita of $33,000.
Alternative Views on Borrowing
However, some institutions, such as the Economic and Financial Crimes Commission (EFCC) and the Revenue Mobilization and Fiscal Commission, argue that improved financial oversight could reduce the need for borrowing.
EFCC Chairman Ola Olukoyede reported recovering over ₦197 billion in 2024 and suggested that better enforcement of dues from International Oil Companies (IOCs) could sufficiently fund the nation’s budget.
The Comptroller General of the Nigeria Customs Service, Bashir Adeniyi, revealed that the agency had exceeded its ₦5.09 trillion revenue target for 2024, collecting ₦5.352 trillion and projecting ₦6.3 trillion for 2025, with further incremental increases for subsequent years.
Additionally, the Nigerian National Petroleum Company Limited (NNPCL) surpassed its 2024 target of ₦12.3 trillion, achieving ₦13.1 trillion in revenue. For 2025, NNPCL aims to remit ₦23.7 trillion to the federation account.
FIRS Chairman Zacch Adedeji also disclosed that the Federal Inland Revenue Service had outperformed its revenue targets across various tax categories.
Senate Approves Fresh Loan Request Amid Criticism
Despite these gains, the Senate approved a ₦1.77 trillion ($2.2 billion) external loan request from President Bola Tinubu to partially finance the 2024 budget deficit. The approval followed the Senate Committee on Local and Foreign Debts’ recommendation, presented by Senator Wammako Magatarkada.
The loan request has drawn sharp criticism, particularly from opposition figures. Former Vice President Atiku Abubakar described the loans as “bone-crushing,” accusing the government of failing to properly negotiate and utilize them.
“These loans are bringing insufferable pressure on the economy,” Atiku wrote on X (formerly Twitter), alleging that corruption drives the government’s borrowing spree rather than genuine developmental needs. He also criticized the National Assembly for enabling the borrowing.
As the debate continues, questions about the balance between fiscal prudence, borrowing, and economic reforms remain at the forefront of Nigeria’s economic discourse.
