- FG collects ₦20.59tn in 8 months
- Govt eyes $1.75bn new World Bank loans
- Economists warn total debt could hit ₦180tn
The Federal Government plans to increase its borrowing despite a remarkable 40.5 per cent surge in revenue for the first eight months of 2025.
According to a statement by Presidential Adviser Bayo Onanuga, the government’s record N20.59tn in revenue collected from January to August came largely from non-oil sources, which now account for 75% of total collections and are credited to major fiscal reforms and improved tax compliance, Eko Hot Blog reports.
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This development, however, appears to contradict President Bola Tinubu’s earlier pledge that Nigeria had met its revenue targets and would no longer need to borrow. The World Bank is now set to approve $1.75bn in new loans to finance crucial projects in agriculture, digital infrastructure, and healthcare.
These include a $500m project to boost agricultural value chains and another $500m for building resilient digital infrastructure.
The decision has ignited a fiery debate among economists. Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, argues that while borrowing is a normal part of budget financing, the key issue is debt sustainability.
On the other hand, development economist Dr. Aliyu Ilias expresses strong reservations, questioning the need for more loans when the government claims higher revenues.
He warns that the borrowing spree could exacerbate inflation and Nigeria’s foreign exchange imbalance, as debt service payments already consume a significant portion of the budget.
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