Nigeria Must Prioritise Revenue Generation Over Borrowing for the 2024 Budget ~Finmin Edun

In a recent development, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, emphasised the need for Nigeria to refrain from relying on borrowing to finance the 2024 national budget. Speaking before the joint Senate Committee overseeing the 2024–2026 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF–FSP), Edun, alongside FIRS Chairman Zacch Adedeji and DMO Director General Patience Oniha, advocated for increased revenue generation and reduced budget deficits. Edun highlighted that spending on revenue-generating infrastructure was crucial for sustainable budget financing. He also pointed out that accessing foreign loans could be prohibitively expensive, given the current international economic climate. Edun stated, "The last thing you can think of is to pile up more debts," emphasising the importance of prioritising revenue sources. Expressing concern, Committee Chairman Sani Musa cautioned against external interventions, noting discrepancies between the revenue projections of government agencies and the federal government's proposed income for the 2024 fiscal year. Musa called attention to revenue leakages, delayed remittances by MDAs, and the impact of waivers on Customs Service revenues. The Senate Committee on Finance seeks clarity on customs modernization (e-customs) agreements to prevent deficit budgets. As Nigeria navigates financial challenges, Edun underscored the significance of optimising government spending and enhancing revenue streams for economic stability and growth.