Why we borrow despite exceeding revenue target, FG tells NASS

The Federal Government has provided further clarification on its decision to exceed revenue targets while continuing to borrow, insisting that these actions were based on approvals from both the Senate and the House of Representatives.

This information emerged during an interactive session held by the Federal Government’s revenue-generating agencies with Senator Sani Musa (APC, Niger East), who led the National Assembly’s joint Committees on Finance, Budget, and National Planning. The session focused on the 2025-2027 Medium Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper (FSP).

The one-day session lasted over four hours in Room 231 of the Senate wing, where various revenue-generating agencies presented their reports on budget performance for 2024 and revenue projections for the N49.7 trillion budget for 2025. Notably, the Nigeria Customs Service (NCS), the Nigerian National Petroleum Company Limited (NNPCL), and the Federal Inland Revenue Service (FIRS) all reported exceeding their revenue targets, generating a combined total of N36.952 trillion—significantly above the goals set for the 2024 fiscal year.

In response, the Minister of Budget and Economic Planning, Senator Atiku Bagudu, reminded lawmakers that the borrowing plans outlined in the N35.5 trillion 2024 budget were primarily intended to cover a deficit of N9.7 trillion. “We have a long-term development plan, Agenda 2050, which aims for a GDP per capita of $33,000,” he added.

Furthermore, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, explained to lawmakers that borrowing remains necessary for adequately funding the budget, despite the increased revenues from some agencies.