Why FG is still borrowing despite increase in revenue — Edun

…As FIRS, Customs, NNPC Ltd exceed revenue targets

Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun has clarified the reason for borrowings by the Federal Government despite increase in the nation’s revenue.

This is as the Nigeria Customs Service (NCS) Nigerian National Petroleum Company (NNPC) Ltd and the Federal Inland Revenue Service (FIRS) exceeded their revenue targets.

During an interactive session Federal Government’s revenue generating agencies had with the Senator Sani Musa (APC, Niger East) led National Assembly’s joint Committees on Finance, Budget and National Planning on 2025-2027 Medium Term Expenditure FrameWork, (MTEF) and Fiscal Strategy Paper (FSP), Edun responding to the committee members’ query on why the Federal Government was still seeking for foreign loans despite the high increase of internally-generated revenues, explained to the lawmakers that borrowing was still needed for proper funding of the budget despite increased revenues.

Also responding, the Minister of Budget and Economic Planning, Senator Atiku Bagudu, explained that the lawmakers should not forget that the borrowing plans contained in the N35.5 trillion 2024 budget were primarily meant to fund the deficit which is N9.7 trillion.

Bagudu said: “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.”

At the one-day session that lasted over four hours in Room 231, Senate wing, the revenue generating agencies made their separate presentations on 2024 budget performance and revenue projections for the N49.7 trillion 2025 budget.

They raked in a combined revenue of N36.952 trillion, which is way above the target for the 2024 fiscal year.