The Federal Government plans to increase its borrowing despite a significant 40.5 per cent surge in revenue for the first eight months of 2025. This boost in revenue has largely been driven by substantial gains in non-oil revenue collections, as confirmed in a press statement on Wednesday by Special Adviser to the President on Information and Strategy, Bayo Onanuga.
According to him, the impact of the current borrowing spree is being felt in reduced public service delivery, particularly in capital expenditure, as debt servicing now consumes a significant portion of available revenue. He warned that this crowding-out effect limits job creation, fuels inflation, and worsens Nigeria’s foreign exchange imbalance, with the naira trading at historically weak levels.
