By Abigail David
The Federal Government exceeded its 2024 borrowing target by N4.79 trillion, raising total new debt to N12.62 trillion as lower-than-expected revenue widened the fiscal deficit, according to the Budget Office of the Federation.
The Fourth Quarter and Consolidated Budget Implementation Report for 2024 showed that borrowing surpassed the approved N7.83 trillion target by 61.2 percent. The fiscal deficit also rose to N13.51 trillion, above the budgeted N9.18 trillion, mainly due to revenue falling short of projections.
Although government expenditure reached N34.49 trillion, only slightly below the approved N35.06 trillion, total revenue stood at N20.98 trillion, about N4.89 trillion below target despite improving by 68.1 percent compared to 2023.
The report showed domestic borrowing met its target at N6.06 trillion, while foreign borrowing increased to N3.37 trillion, exceeding the budget by N1.60 trillion. The government also received N3.19 trillion in budget support that was not included in the original budget, contributing to the higher borrowing level.
Oil revenue remained below expectations as crude production and global oil prices underperformed budget assumptions. However, non-oil revenue exceeded projections, driven by stronger collections from Company Income Tax, Value Added Tax, Customs revenue and the Electronic Money Transfer Levy.
The report also indicated that Nigeria’s total public debt rose to N144.67 trillion by the end of 2024, with the debt-to-GDP ratio reaching 61.22 percent, above both the country’s 40 percent benchmark and the 56 percent threshold often used for comparable economies.
Economic analysts said the growing debt profile highlights the need for stronger revenue generation and prudent use of borrowed funds. While some experts warned that rising borrowing could increase debt servicing costs and inflationary pressures, others argued that debt remains sustainable if invested in productive infrastructure and projects that stimulate economic growth.
