FG To Continue Borrowing Despite Rise In Revenue

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.  READ ALSO: EBONYI STATE GOVERNOR SUSPENDS TWO COMMISSIONERS, OTHERS 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.

Each Nigerian Owes N619,501 as Debt Profile Hits N134 Trillion  

Nigeria’s ever surging debt hits N134.297 trillion as of last June, dragging each citizen into a N619,501 debt burden without much to show for it. Nigeria’s Debt Management Office (DMO) reports that the figure stems from Nigeria’s total public debt, which surged to N134.297 trillion by the end of June 2024.   With the country’s population estimated at 216.7 million by the National Bureau of Statistics (NBS), the debt burden per capita reflects the mounting financial strain on citizens.  This amount is equivalent to nine times the newly approved minimum wage of N70,000.   A breakdown of the debt reveals that domestic liabilities stand at N71.2 trillion, while external obligations amount to N63 trillion.  The federal government accounts for a significant portion, with domestic debt at N66.9 trillion and external debt at N55.8 trillion. State governments owe a combined N11.3 trillion.   The N134 trillion debt figure represents a N13 trillion increase since March 2024, raising concerns about the country’s growing dependence on borrowing to finance its operations.