Minister of Finance and Coordinating Minister of the Economy, Wale Edun, says the Nigerian government needs more borrowings to fund its budget even though some Ministries, Departments and Agencies have surpassed their revenue target.
The Minister stated this during an interactive session of the Senate Joint Committees on Finance and National Planning and Economic Affairs on the 2025-2027 Medium-Term Expenditure Framework/Fiscal Strategy Paper.
Edun said the borrowing needs to be done productively and efficiently based on the Senate’s approval for proper funding of the budget.
“The revenue effort has been good, but we still need to do better, and in the meantime, we still need to borrow productively, effectively and sustainably.
“Not just infrastructure but also social services, health services, education and intervention in terms of social safety net to help the poorest and most vulnerable,” Edun said.
On his part, while giving a similar reason, the Minister of Budget and Economic Planning, Senator Atiku Bagudu reminded the lawmakers that the borrowing plans contained in the N35.5 trillion 2024 budget, were primarily meant to fund the N9.7 trillion deficit.
“Despite revenue targets surpassed by some of the revenue generating agencies, the government still needs to borrow for proper funding of the budget, particularly in the area of deficit and productivity for the poorest and most vulnerable.
“We have a long term development perspective plan agenda 2050 aiming at GDP per capita of $33,000,” Bagudu explained.
Meanwhile, the Economic and Financial Crimes Commission, EFCC, Chairman, Ola Olukoyede, who told the committee that it has recovered over N197 billion since January 2024, noted that if the government works hard and derives the requisite collection, the country would have enough to fund the budget.
Similarly, the Comptroller General of Nigeria Customs Service, Bashir Adeniyi, in his presentation, disclosed that the Customs has raked in N5.352 trillion in revenue above the N5.09 trillion target for the 2024 fiscal year.
He further said that N6.3 trillion is targeted as projected revenue for 2025, a 10% increase of which would be the revenue target for 2026 and an additional 10% increase for the 2027 fiscal year.
In his own presentation, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, NNPCL, Mele Kyari, said the company exceeded the N12.3 trillion revenue projected for 2024 by already raking in N13.1 trillion.
“For the 2025 fiscal year, N23.7 trillion is projected by NNPCL to be remitted into the federation account“, he said.
Also, the Chairman of the Federal Inland Revenue Service, FIRS, Zacch Adedeji, in his presentation, informed the joint committees that FIRS had surpassed targeted revenues across the various tax components.
DAILY POST recalls that the Senate on Thursday approved the N1.77 trillion ($2.2b) loan request of President Bola Tinubu after a voice vote.
The Senate presided over by Deputy Senate President, Barau Jibrin, approved the loan after the Senate Committee on Local and Foreign Debts chaired by Senator Wammako Magatarkada (APC, Sokoto North) presented the report of the committee.
The request, which was submitted by the President on Tuesday, is part of a fresh external borrowing plan to partially finance the N9.7 trillion budget deficit for the 2024 fiscal year. (DAILY POST)
