Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, has stated that despite the country’s staggering N134 trillion public debt, more borrowing is necessary to fund essential government services. Edun made these comments during an interactive session with the Senate’s Joint Committees on Finance, National Planning, and Economic Affairs regarding the 2025-2027 Medium-Term Expenditure Framework and Fiscal Strategy Paper.
The minister acknowledged that some Ministries, Departments, and Agencies (MDAs) had exceeded their revenue targets but emphasized the need for continued borrowing to meet the government’s fiscal needs. He explained that borrowing would be done strategically to support critical investments in the country’s economy, including infrastructure, social services, healthcare, education, and safety net programs for the most vulnerable populations.
Edun stated, “While revenue generation has improved, we must do better. In the meantime, we need to borrow in a productive, efficient, and sustainable manner to ensure the country’s economic growth and development.”
Senator Atiku Bagudu, the Minister of Budget and Economic Planning, further clarified that the government’s borrowing plans, detailed in the 2024 budget of N35.5 trillion, were necessary to cover a N9.7 trillion deficit. He also mentioned that the government’s long-term development agenda, which targets a per capita GDP of $33,000 by 2050, requires a balanced approach to borrowing and revenue generation.
However, contrasting views were presented by the Economic and Financial Crimes Commission (EFCC) and the Revenue Mobilization and Fiscal Commission. EFCC Chairman Ola Olukoyede argued that Nigeria could potentially fund its budget without additional loans, pointing to over N197 billion recovered by the agency in 2024. Additionally, Bashir Adeniyi, the Comptroller General of the Nigeria Customs Service, reported that the Customs had exceeded its revenue target for 2024, generating N5.352 trillion, and set ambitious targets for 2025-2027.
While the debate on borrowing continues, the government’s fiscal strategy remains focused on ensuring financial resources for key services, even as it navigates a significant public debt burden.
