The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has justified the Bola Tinubu administration’s continued borrowing to fund national budgets, despite significant revenue surpluses from some Ministries, Departments, and Agencies (MDAs).
Edun made this disclosure during an interactive session with the Senate Joint Committees on Finance, National Planning, and Economic Affairs concerning the 2025-2027 Medium-Term Expenditure Framework/Fiscal Strategy Paper.
Acknowledging Nigeria’s public debt, which now stands at over ₦134 trillion, Edun emphasized the necessity of borrowing for productive and sustainable investments in infrastructure, social services, education, and health.
“The revenue effort has been good, but we still need to do better. In the meantime, we still need to borrow productively, effectively, and sustainably to invest in the Nigerian economy—not just in infrastructure, but also in social services and safety nets to support the poorest and most vulnerable,” Edun stated.
Similarly, the Minister of Budget and Economic Planning, Senator Atiku Bagudu, reinforced the borrowing agenda. He noted that the ₦35.5 trillion 2024 budget includes plans to address a ₦9.7 trillion deficit.
“Even though some revenue-generating agencies have surpassed their targets, borrowing remains essential to fund the budget, particularly in addressing deficits and supporting the poorest and most vulnerable. Our long-term Agenda 2050 aims for a GDP per capita of $33,000,” Bagudu explained.
EFCC and Revenue Agencies Highlight Alternatives to Borrowing
In contrast, the Economic and Financial Crimes Commission (EFCC) and the Revenue Mobilisation and Fiscal Commission argued that Nigeria could fund its budget without resorting to loans.
Ola Olukoyede, Chairman of the EFCC, revealed that the agency has recovered over ₦197 billion since January 2024. He suggested that stronger efforts to collect outstanding revenues from International Oil Companies (IOCs) could eliminate the need for borrowing.
The Comptroller General of the Nigeria Customs Service, Bashir Adeniyi, also reported impressive revenue performance. The agency exceeded its ₦5.09 trillion target for 2024, generating ₦5.352 trillion. Adeniyi projected further increases, with targets of ₦6.3 trillion for 2025 and annual 10% increments for subsequent years.
Balancing Borrowing and Revenue Optimization
While the administration maintains that borrowing is crucial for economic development and social safety nets, critics have questioned the sustainability of such fiscal policies, given the country’s growing debt burden. The discourse underscores the need for a balanced approach to funding Nigeria’s economic ambitions without deepening financial liabilities.
The Senate is expected to deliberate on these perspectives before approving further borrowing under the proposed fiscal framework.