The Federal Government plans to increase borrowing despite a 40.5% revenue rise in the first eight months of 2025. According to Bayo Onanuga, Special Adviser to the President on Information and Strategy, total collections reached ₦20.59 trillion from January to August, with non-oil revenue accounting for 75% of this amount.
*Key Points:*
- *Revenue Growth:* ₦20.59 trillion collected from January to August 2025, up from ₦14.6 trillion in the same period in 2024
- *World Bank Loan:* $1.75 billion loan expected to be approved by year-end for development projects in:
- *Agriculture:* Nigeria Sustainable Agricultural Value-Chains for Growth project ($500 million)
- *Digital Infrastructure:* Building Resilient Digital Infrastructure for Growth ($500 million)
- *Health:* Health Security Programme Phase II ($250 million)
- *Microfinance:* Fostering Inclusive Finance for MSMEs ($500 million)
- *Debt Concerns:* Nigeria's debt to the World Bank rose to $18.23 billion by March 2025, representing 39.7% of the nation's total external debt
- *Economic Warnings:* Economists caution that heavy borrowing could worsen fiscal pressures if not matched with improved revenue generation and prudent spending
Despite meeting its 2025 revenue target early, Nigeria's growing debt burden and funding gaps in key sectors have prompted plans for both local and foreign borrowing. Economists stress the importance of debt sustainability and proper utilization of borrowed funds.
President Bola Tinubu's administration is seeking a fresh $1.75 billion loan from the World Bank, despite boasting about increased revenue. The President recently highlighted that Nigeria's revenue had surged by 40.5% in the first eight months of 2025, largely driven by non-oil revenue collections, which accounted for 75% of the total revenue of ₦20.59 trillion.
*Contrasting Claims*
- Tinubu's administration claims to have increased revenue, but is seeking more loans, raising concerns about debt management.
- The President had previously stated that Nigeria would no longer rely on loans to fund its budget after meeting its 2025 revenue target early.
*Debt Concerns*
- Nigeria's debt to the World Bank rose to $18.23 billion by March 2025, representing 39.7% of the nation's total external debt.
- Economists warn that heavy borrowing could worsen fiscal pressures if not matched with improved revenue generation and prudent spending.¹
*Impact on Nigerians*
- The increased debt burden may further strain the economy, potentially leading to higher inflation and reduced purchasing power for Nigerians.
- The loan may also exacerbate Nigeria's debt vulnerability, making it challenging to achieve sustainable economic growth.²
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