The Federal Government borrowed ₦12.62 trillion in 2024, exceeding its original borrowing target by ₦4.79 trillion, according to the Budget Office of the Federation’s Fourth Quarter and Consolidated Budget Implementation Report.
The report showed that the increase in borrowing was driven by a significant revenue shortfall, which pushed the fiscal deficit to ₦13.51 trillion, well above the budgeted ₦9.18 trillion.
Government revenue for the year stood at ₦20.98 trillion, falling short of the ₦25.88 trillion target, while total expenditure reached ₦34.49 trillion, remaining close to the approved budget.
Domestic borrowing met its target at ₦6.06 trillion, but foreign borrowing rose to ₦3.37 trillion. The government also received ₦3.19 trillion in budget support, contributing to the higher than expected borrowing.
The report noted that oil revenue underperformed due to lower crude oil production and weaker international oil prices. However, non oil revenue exceeded expectations, driven by stronger collections from Company Income Tax, Value Added Tax, Customs duties and Electronic Money Transfer Levy.
Debt servicing also increased significantly during the year, with the government spending ₦12.36 trillion, more than 50 percent above the amount originally budgeted.
The Budget Office further disclosed that Nigeria’s total public debt rose to ₦144.67 trillion by the end of 2024, pushing the debt to GDP ratio above the country’s recommended threshold.
Reacting to the report, economists warned that rising borrowing could increase inflationary pressures and worsen the country’s debt burden if the funds are not invested in productive sectors. They urged the government to strengthen revenue generation, improve fiscal discipline and ensure borrowed funds are used for projects that support economic growth.
