Bagudu: FG still needs to borrow despite surpassing revenue targets

Atiku Bagudu, the minister of budget and economic planning, says despite surpassing revenue targets, the federal government still needs to borrow for proper budget funding.

Bagudu spoke on Monday at an interactive session on the 2025-2027 medium-term expenditure framework (MTEF) and fiscal strategy paper (FSP) for revenue-generating agencies in Abuja.

The minister said the borrowing plans outlined in the N35.5 trillion 2024 budget are primarily aimed at financing the N9.7 trillion deficit.

“Despite the revenue targets surpassed by some of the revenue-generating agencies, government still needs to borrow for proper funding of the budget, particularly in the areas of deficit and productivity for the poorest and the most vulnerable,” Bagudu said.

“We have a long term development plan agenda 2050 aiming at GDP per capital of 33,000 dollars.”

Similarly, Wale Edun, minister of finance and coordinating minister of the economy, reiterated the need for borrowing to support the budget, despite improved revenue generation by some agencies.

Edun expressed optimism about Nigeria’s economic future, noting that strategic decisions made by the current administration have reset the economy.

The minister emphasised the significance of adopting market-based pricing for petroleum products and foreign exchange, stating that these measures have conveyed positive signals to investors.

Earlier, the agencies, in their individual presentations on the 2024 budget performance and revenue forecasts for the N49.7 trillion 2025 budget, reported surpassing their revenue targets for the 2024 fiscal year.

Bashir Adeniyi, comptroller-general of the Nigeria Customs Service (NCS), said the organisation had generated N5.352 trillion in revenue as of September 30, exceeding the N5.09 trillion target set for the current fiscal year.

He said the revenue projection for 2025 is N6.3 trillion, with an additional 10 percent increase being set as the revenue target for the 2026 and 2027 fiscal years.

Mele Kyari, the group chief executive officer of the Nigerian National Petroleum Company (NNPC) Limited, announced that the company surpassed its 2024 revenue projection of N12.3 trillion by generating N13.1 trillion.

“For the 2025 fiscal year, N23.7 trillion is projected by NNPCL to be remitted into the federation account,” Kyari added.

On his part, Zacch Adedeji, chairman of the Federal Inland Revenue Service (FIRS), said the organisation had exceeded the revenue targets set for various tax categories.

“Company income tax of N4 trillion was targeted but N5.7 trillion has been realised now,” Adedeji said.

“On education tax, N70 billion was targeted, while a total of N1.5 trillion has been realised.

“In all, out of the N19.4 trillion targeted for the 2024 fiscal year, N18.5 trillion has been attained as at the end of September, which clearly shows that the target will be far exceeded by the end of the year.”

NIS TO RE-APPEAR BEFORE COMMITTEE OVER REVENUE TRANSPARENCY ISSUES

However, Sani Musa, chairman of the joint committee, raised concerns about the Nigerian Immigration Service’s (NIS) lack of transparency regarding its revenue performance.

Musa, who was particular about the public-private partnership (PPP) arrangement between NIS and a private firm on passport productions, urged the organisation to re-appear before the committee.