Nigeria Exceeds 2024 Borrowing Target by N4.79 Trillion

The Government of Nigeria exceeded its 2024 borrowing target by N4.79 trillion, totaling N12.62 trillion in new loans against a budgeted N7.83 trillion. According to the Budget Office of the Federation, this 61.2 percent increase was driven by a N4.93 trillion shortfall in gross oil revenue due to lower crude prices and production, which pushed the fiscal deficit to N13.51 trillion.

Total public debt reached N144.67 trillion by December 2024. This resulted in a debt-to-GDP ratio of 61.22 percent, surpassing the national threshold of 40 percent and the international benchmark of 56 percent. Debt servicing also reached N12.36 trillion, exceeding projections by over 52 percent.

Minister of Finance Taiwo Oyedele defended the borrowing as rational if used to finance productive assets. However, critics including Muhammadu Sanusi II and Atiku Abubakar condemned the move. Atiku Abubakar characterized the administration's actions as fiscal vandalism and questioned the source of N3.19 trillion in budget support that lacked provision in the approved appropriation. He argued that the government continues to borrow despite economic reforms and an estimated N7.98 trillion oil revenue windfall.