Federal government borrowed N4.79 trillion more than planned in 2024 after weaker revenue forced higher debt levels, the Budget Office of the Federation reported.
New borrowings reached N12.62 trillion against an approved target of N7.83 trillion, a 61.2 per cent overrun, according to the Fourth Quarter and Consolidated Budget Implementation Report for 2024.
The wider fiscal deficit of N13.51 trillion, compared with the budgeted N9.18 trillion, stemmed mainly from a N4.90 trillion revenue shortfall. Federal revenue came in at N20.98 trillion against a target of N25.88 trillion, while expenditure of N34.49 trillion remained close to the approved N35.06 trillion.
“The revenue and expenditure outturn of the Federal Government resulted in a fiscal deficit of N13.51tn in the 2024 fiscal year. This was N4.34tn (47.33 per cent) above the projected budget deficit estimate for the year,” the report stated.
Domestic borrowing stayed on target at N6.06 trillion, but foreign borrowing rose to N3.37 trillion from a projected N1.77 trillion. An additional N3.19 trillion in budget support was secured despite not being provided for in the approved budget.
Oil revenue underperformed at N15.07 trillion against a N19.99 trillion target, while non-oil revenue exceeded expectations at N16.09 trillion. Debt servicing alone reached N12.36 trillion, 52.71 per cent above the budgeted N8.27 trillion.
“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,” the report noted.
Nigeria’s total public debt climbed to N144.67 trillion by December 2024, pushing the debt-to-GDP ratio to 61.22 per cent and exceeding both the country’s 40 per cent threshold and the 56 per cent benchmark for comparable economies.
Economic experts voiced mixed views. CSA Advisory chief executive Aliyu Ilias warned of potential inflationary pressure, while Nigerian Economic Summit Group research director Dr Olusegun Omisakin stressed that the key issue was productive use of borrowed funds.
