SENATORS GRILL FG OVER BORROWING SPREE DESPITE SURPASSING REVENUE TARGETS
This page is supported by Shell Nigeria. Click here for more information
GREATRIBUNETVNEWS–Nigeria’s Federal Government has come under fire from senators over its borrowing spree, despite revenue generating agencies surpassing their targets.
The paradox of exceeding revenue targets while still borrowing has raised eyebrows, with senators questioning the government’s motives.
The Nigeria Customs Service, Nigerian National Petroleum Company Limited (NNPCL), and Federal Inland Revenue Service (FIRS) all reported surpassing their revenue targets for 2024. NCS raked in N5.352 trillion, exceeding its target of N5.09 trillion. NNPCL exceeded its revenue projection of N12.3 trillion by generating N13.1 trillion. FIRS also surpassed its targets, generating N5.7 trillion from Company Income Tax and N1.5 trillion from Education Tax.
Despite these successes, the government is still seeking foreign loans, prompting senators to ask why. Senator Adamu Aliero questioned what the government is doing with the excess revenues generated by the agencies, given its unending requests for foreign loan approvals.
The FIRS boss responded that borrowing is part of the Appropriation Act approved by the National Assembly. However, this explanation did not sit well with the senators, who argued that the government should be using the excess revenues to fund its budget instead of borrowing.
The Minister of Budget and Economic Planning, Senator Atiku Bagudu, explained that the borrowing plans are meant to fund the deficit, which stands at N9.7 trillion. However, this explanation has not alleviated concerns about the government’s borrowing habits.
The issue of borrowing has become a contentious one in Nigeria, with many expressing concerns about the country’s rising debt profile. As of December 2023, Nigeria’s total external debt stock stood at $4.61 billion, while domestic debt stood at N5.82 trillion.The government’s borrowing spree has sparked fears about the country’s ability to service its debts and the potential impact on the economy.
