The Federal Government borrowed N4.79 trillion above its 2024 target after a larger-than-expected budget deficit forced it to secure additional financing, according to the Budget Office of the Federation.
The disclosure indicates that the government’s actual borrowing for the 2024 fiscal year surpassed the amount originally approved in the budget, reflecting mounting fiscal pressures driven by a wider-than-projected deficit.
The Budget Office said the higher borrowing became necessary to bridge the funding gap created by increased expenditure commitments and revenue shortfalls, underscoring the challenges of sustaining public finances amid prevailing economic headwinds.
The development highlights the growing reliance on debt financing to support government operations and implement key budgetary programmes. While borrowing remains a recognised fiscal tool for funding deficits and infrastructure development, economists have repeatedly warned that rising debt levels could place additional pressure on public finances if not matched by stronger revenue generation.
Analysts say the latest figures reinforce the need for improved revenue mobilisation, prudent spending and sustained fiscal reforms to reduce dependence on borrowing and strengthen Nigeria’s long-term economic stability.
The revelation comes as the government continues efforts to balance its development agenda with fiscal sustainability, amid concerns over debt servicing costs and the country’s widening financing needs.
Further details on the composition of the additional borrowing and its implications for Nigeria’s debt profile are expected to emerge as fiscal authorities release more comprehensive reports.
