Finance Minister Wale Edun Calls for Increased Borrowing

Nigeria's Finance Minister and Coordinating Minister of the Economy, Wale Edun, has emphasized the necessity for increased borrowing to adequately fund the nation's budget.

Despite some Ministries, Departments, and Agencies surpassing their revenue targets, Edun highlighted during an interactive session with the Senate Joint Committees on Finance and National Planning and Economic Affairs that borrowing remains essential.

He stated, "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."

Edun underlined the importance of using borrowed funds not only for infrastructure but also for social services, health, education, and interventions aimed at supporting the poorest and most vulnerable populations. This approach aligns with the government's long-term development perspective plan, Agenda 2050, which aims for a GDP per capita of $33,000.

Senator Atiku Bagudu, the Minister of Budget and Economic Planning, echoed Edun's sentiments, noting that the borrowing plans within the N35.5 trillion 2024 budget are primarily intended to address the N9.7 trillion deficit. He reiterated the need for borrowing to ensure proper funding of the budget, particularly in areas impacting productivity and support for vulnerable groups.

Additionally, the Economic and Financial Crimes Commission (EFCC) Chairman, Ola Olukoyede, reported recovering over N197 billion since January 2024, suggesting that enhanced revenue collection could potentially reduce the need for borrowing.

Meanwhile, the Nigerian Customs Service and the Nigerian National Petroleum Company Limited (NNPCL) both exceeded their revenue targets, with the latter projecting N23.7 trillion to be remitted into the federation account for the 2025 fiscal year.

Despite these achievements, the Senate approved President Bola Tinubu's request for a $2.2 billion loan to partially finance the budget deficit, highlighting the ongoing reliance on external borrowing to meet financial obligations.