The Federal Government of Nigeria exceeded its 2024 borrowing target by N4.79 trillion after a wider-than-projected budget deficit forced the administration to seek substantial extra financing, the Budget Office of the Federation has disclosed.
According to the Fourth Quarter and Consolidated Budget Implementation Report for 2024, total new borrowings surged to N12.62 trillion—exceeding the approved N7.83 trillion target by 61.2 percent.
The escalation in borrowing followed a severe revenue shortfall, which pushed the overall fiscal deficit to N13.51 trillion compared to the projected N9.18 trillion budget benchmark.
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Aggregate government revenue stood at N20.98 trillion, falling N4.90 trillion short of the target due largely to underperformance in the oil sector.
Gross oil revenue reached N15.07 trillion against a projected N19.99 trillion, hit by international crude prices averaging $74.65 per barrel and daily production averaging 1.54 million barrels per day—both below budget assumptions.
By contrast, gross non-oil revenue exceeded projections, reaching N16.09 trillion driven by strong collections in Company Income Tax, Value Added Tax, and Customs revenue.
Total public debt reached N144.67 trillion by December 2024, lifting the debt-to-GDP ratio to 61.22 percent, which surpasses Nigeria's self-imposed threshold of 40 percent.
Prominent economists and financial experts have warned that the mounting debt service, which absorbed N12.36 trillion in 2024, poses severe macroeconomic risks if borrowed funds are not directed toward productive capital projects.
"A total of N12.36tn was committed as total debt expenditure for the year, 52.71 per cent above the N8.27tn budgeted for the period... translating to a net present value of total public debt/GDP ratio of 61.22 per cent as at the end of December 2024." — Budget Office of the Federation
#NigeriaEconomy #FGBorrowing #BudgetOffice #NigeriaDebt #Macroeconomics #TaiwoOyedele #NigeriaNews
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