Nigeria’s public finance landscape faces heightened scrutiny following official disclosures that the Federal Government’s new borrowings spiked to ₦12.62 trillion during the 2024 fiscal cycle. According to figures from the Budget Office of the Federation, this figure exceeded the original borrowing cap of ₦7.83 trillion by 61.2 per cent, driven by wider revenue shortfalls and expanding budget deficits.
The sharp escalation in borrowing was necessitated by a widening fiscal gap, which expanded to ₦13.51 trillion against the initial target of ₦9.18 trillion. While domestic borrowing remained aligned with initial estimates at ₦6.06 trillion, external loans jumped to ₦3.37 trillion—surpassing expectations by ₦1.60 trillion. Additionally, unbudgeted special support funds of ₦3.19 trillion were drawn down to bridge the liquidity shortfall.
The government’s debt service obligations also placed heavy strain on national resources. Debt expenditure surged to ₦12.36 trillion, overshooting its ₦8.27 trillion allocation by 52.7 per cent. Consequently, debt obligations consumed 36 per cent of the national budget execution, severely constraining capital releases for public infrastructure and social development projects.
Economists and policy analysts express rising concern over the trend. With total public debt expanding to ₦144.67 trillion and pushing the debt-to-GDP ratio to 61.22 per cent—above the 40 per cent national benchmark—experts are calling for stricter expenditure limits, tighter fiscal discipline, and improved non-oil revenue generation to restore long-term macroeconomic stability.
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