.Increased oil production, other indices to boost revenue — Edun tells Reps
..By Seun Ibiyemi
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has announced that the government plans to borrow N9.3 trillion and allocate N2 trillion for debt servicing in the 2025 fiscal year, reflecting ongoing efforts to stabilize the economy while managing fiscal challenges.
This is even as he projected an improvement in Nigeria’s economy for 2025, citing increased revenue and measures to address factors that previously hampered economic growth
Edun disclosed these figures while presenting the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) to the House of Representatives.
Despite the projected borrowing, he expressed optimism about the country’s economic prospects, citing expected revenue increases and structural reforms aimed at reducing fiscal deficits.
Acknowledging the high borrowing requirement, Edun highlighted reforms designed to enhance revenue collection and reduce Nigeria’s reliance on debt.
“The projected borrowing underscores existing fiscal pressures, but anticipated revenue growth will reduce future borrowing needs while supporting economic competitiveness,” he said.
The N2 trillion earmarked for debt servicing demonstrates the government’s commitment to maintaining its creditworthiness, even as it seeks sustainable alternatives to borrowing through improved revenue performance.
The Minister pointed to ongoing foreign exchange reforms and market-driven pricing policies as critical measures addressing past inefficiencies, which previously cost the economy about 5 percent of GDP.
“These reforms ensure that economic losses benefiting only a few are curtailed,” he explained.
Chairman of the House Committee on Finance, Rep. James Abiodun Faleke, stressed the importance of monitoring revenue performance for 2024 to better prepare for the 2025 budget.
He urged government agencies to submit comprehensive reports detailing revenue generation and expenditures for the past 11 months.
Additionally, the Committee summoned Nigerian Ports Authority (NPA) Managing Director, Dr. Abubakar Dantsoho, to appear on December 10, after rejecting his representative’s explanation for his absence.
While the borrowing and debt servicing projections highlight Nigeria’s fiscal constraints, the government’s revenue-focused reforms offer a path toward economic stability. If successfully implemented, these measures could reduce debt dependency, stimulate economic growth, and create a more favorable investment climate.