The Federal Inland Revenue Service (FIRS) has defended the Nigerian government's borrowing framework, emphasizing that debt is a legitimate and strategic part of the national budget.
FIRS stated that government borrowing, both domestic and external, is crucial for funding key infrastructure, economic growth projects, and fiscal deficits, especially when revenues fall short.
The borrowing plan for 2025, which includes an external component of $1.23 billion planned for the second half of the year, forms part of a structured Medium-Term Expenditure Framework compliant with Nigeria's Fiscal Responsibility Act and Debt Management Office Act.
The government stresses that the borrowing plan is forward-looking and does not equate to immediate or wholesale debt accumulation but is tied to approved annual budgets and fiscal policies aimed at sustainable debt management.
Nigeria’s total borrowing for 2025 is projected at about N13.8 trillion (approximately 3.87% of GDP), focusing on critical sectors such as infrastructure, agriculture, power, and security.
FIRS highlighted that borrowing remains a necessary tool to complement government revenue, stabilize the economy, and support ongoing development, especially amid macroeconomic challenges like inflation and fluctuating oil prices.