Despite the appreciable rise in revenue, the Federal Government has insisted that borrowing remains necessary to fund key policies.
Finance Minister Wale Edun and Budget Minister Atiku Bagudu disclosed this at a recent Senate meeting, where they outlined plans for managing Nigeria’s fiscal challenges in the coming years.
Edun recognized the improvements in the country’s revenue collection but emphasized that these gains would not be enough to fully fund the government’s ambitious development agenda.
He noted that additional loans would be required to support a range of initiatives, including infrastructure projects and essential social services such as healthcare and education.
In particular, Edun highlighted the need for borrowing to address social safety nets designed to assist the most vulnerable Nigerians.
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He stressed that the government’s borrowing strategy would be aimed at ensuring sustainable economic growth, with a clear focus on meeting both immediate and long-term needs.
Bagudu, for his part, pointed out that the government’s borrowing plans are designed to cover a deficit in the ₦35.5 trillion 2024 budget, which includes provisions for tackling poverty and promoting economic productivity.
He also referenced Nigeria’s long-term development goals, including increasing the GDP per capita to $33,000 by 2050, a vision that will require careful financial planning and, at least in the short term, more borrowing.
While this strategy reflects the government’s determination to push forward with its development goals, it also raises concerns about the sustainability of Nigeria’s increasing national debt and the potential impact on future generations.
Analysts argue that such borrowing must be committed to funding projects with capacity for repaying the loans.
