The Minister of Finance has explained why the Federal Government continues to borrow despite reports that some revenue-generating agencies have exceeded their targets.
Speaking in a video, the minister said surpassing revenue targets does not mean the government has generated enough money to fund its entire budget.
Responding to questions about increased revenue from agencies such as the Nigeria Revenue Service (NRS) and the Nigeria Customs Service, the minister said:
“NRS exceeding revenue, Customs Service exceeding revenue. Where is all this money going, and why are we still borrowing? And it’s a very important question. Important because we have a lot of needs as a country.
“When we take our budget, and let’s say it’s 10 Naira, that is the amount we want to spend, including personnel costs, running government, paying debt service, and building infrastructure—it’s 10 Naira.
“We look at all our numbers, and we say we can generate 6 Naira. 6 Naira is our revenue target, and our expenditure is 10. If we end up generating revenue of 7 Naira, we will say we have exceeded our revenue target. It’s not a lie. But we still need 3 Naira to balance the budget, because we need to spend 10.
“So this is the reason why both can coexist: government can exceed revenue targets and still have to borrow.
“And in terms of where the money is going, this is one of the analyses we are working on in the Ministry of Finance. Very soon, we’re going to be able to release it, putting numbers to it. But just to give a couple of examples…”
The minister said the government is preparing a detailed analysis showing how public funds are spent and why borrowing is still required to bridge the gap between revenue and expenditure.
According to the minister, the analysis will soon be made public with figures to explain the country’s spending needs and borrowing decisions.
See the video below:
https://x.com/i/status/2079567743582400935
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