The Federal Government has clarified the rationale behind its borrowing practices, stating that loans are acquired based on approvals from the National Assembly. This disclosure was made during a joint session of the National Assembly’s Committees on Finance, Budget, and National Planning, which focused on the 2025-2027 Medium-Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper (FSP).
At the session, which was led by Senator Sani Musa (APC, Niger East), various revenue-generating agencies presented updates on the 2024 budget performance and projected revenue for the 2025 budget, which is set at a staggering N49.7 trillion.
Minister of Budget and Economic Planning, Senator Atiku Bagudu, emphasized that the N35.5 trillion budget for 2024 was designed to cover the budget deficit of N9.7 trillion, with borrowing being necessary to fund this gap. He also noted the government’s long-term plan, which includes achieving a GDP per capita of $33,000 by 2050.
Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, reinforced the need for continued borrowing, despite exceeding some revenue targets. He explained that the funds are essential for meeting critical budgetary needs, especially for addressing deficits and funding productivity-focused initiatives that support vulnerable populations.
The National Assembly’s approval remains a crucial component in determining the extent to which borrowing is pursued, ensuring that the government remains aligned with legislative oversight while addressing the nation’s fiscal needs.
