The Federal Government has said it is necessary to borrow to fund the budget deficits despite the excess revenues generated by its agencies this year.

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and Minister of Budget and Economic Planning, Atiku Badugu, stated this on Monday in Abuja, when they appeared before the National Assembly’s joint Committee on Finance, Budget and National Planning on 2025 – 2027 Medium Term Expenditure Frame Work (MTEF) and Fiscal Strategy Paper (FSP).

Recall that the National Assembly, last Thursday, approved President Bola Ahmed Tinubu’s loan request of $2.2 billion to partially finance the N9.7 trillion budget deficit for the 2024 fiscal year.

The Group Chief Executive Officer (GCEO) of Nigerian National Petroleum Company Limited (NNPCL), Mr Mele Kyari; the Comptroller – General of Nigeria Customs Service (NCS) Bashir Adeniy; Chairman of Federal Inland Revenue Service (FIRS), Zacch Adedeji; all made presentations on their revenues for the 2024 fiscal year during the session.

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Bashir Adeniyi said the Nigerian Customs Service had at September 30, 2024, raked in N5.352 trillion revenue, above the N5.09 trillion targeted for the entire 2024 fiscal year.

He said N6.3 trillion was projected revenue target for 2025, 10% increase of which would be the revenue target for 2026 fiscal year.

In his presentation, Mele Kyari, said the NNPCL exceeded the N12.3 trillion revenue projected for 2024 by already raking in N13.1 trillion. For the 2025 fiscal year, Kyari said, “N23.7 trillion is projected by NNPCL to be remitted into the federation account.”

Also, Adedeji said on company income tax, the FIRS targeted N4 trillion, but that N5.7 trillion has already been realised. On education tax, he said N70 billion was targeted, while a total of N1.5 trillion has been realised by the FIRS.

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

After their presentations, the Joint committee led by Senator Sani Musa (APC, Niger East), asked why the federal government was still seeking a foreign loan despite the excess revenue by its agencies.

Responding, the FIRS boss said the loans being requested by the executive were already part of the appropriation act.

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

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

Similarly, Edun explained that borrowing was still needed for proper funding of the budget despite increased revenues by some agencies.

Chairman of the joint Committee, Senator Sani Musa, however, ordered Immigration Service to present all the documents on the “unacceptable PPP arrangement” to the committee before the end of the week.