- The Federal Government of Nigeria has exceeded its 2024 borrowing target by N4 trillion.
- The government’s actual borrowing stands at N8.93 trillion, surpassing the initial target.
- The high level of borrowing has raised concerns about the sustainability of Nigeria’s debt and its potential impact on the economy.
The Federal Government of Nigeria has exceeded its 2024 borrowing target by a whopping N4 trillion. According to reports, the government had estimated a total expenditure of N27.50 trillion and revenue of N18.32 trillion, leaving a fiscal deficit of N9.05 trillion .
The government had planned to finance this deficit through a combination of domestic borrowings (N6.04 trillion), foreign borrowings (N1.77 trillion), multilateral/bilateral loan drawdowns (N941.19 billion), and privatization proceeds (N298.49 billion) .
However, the actual borrowing has exceeded the target, with the government borrowing N8.93 trillion from domestic investors in the first 11 months of 2024 . This has raised concerns about the sustainability of Nigeria’s debt and the potential impact on the economy.
Analysts have warned that the high level of borrowing could lead to a crowding-out effect, where the government’s borrowing pushes up interest rates and makes it more difficult for private businesses to access credit .
