The Federal Government is set to borrow more in 2025 despite a 40.5 per cent rise in revenue within the first eight months of the year.

Bayo Onanuga, Special Adviser to the President on Information and Strategy, disclosed that from January to August 2025, total collections stood at N20.59 trillion, up from N14.6 trillion in the same period of 2024.

He said the performance aligned with projections and kept the government on track to achieve its annual non-oil revenue target.

Non-oil earnings accounted for 75 per cent of total collections. However, funding pressures remain, with indigenous contractors recently protesting over N4 trillion in unpaid 2024 project claims.

This comes despite President Bola Tinubu’s earlier declaration that Nigeria would “no longer rely on borrowing to fund its budget.” The government is, however, finalising plans to secure $1.75 billion in World Bank loans this year to finance agriculture, digital infrastructure, health, and support for micro, small, and medium enterprises (MSMEs). The facilities include $500m for Agricultural Value-Chains for Growth, $500m for Digital Infrastructure, $250m for the Health Security Programme Phase II, and $500m for Inclusive Finance for MSMEs.

Reactions from economists have been divided. Adewale Abimbola said borrowing was not necessarily negative if funds were concessionary and channelled into projects with medium-term revenue prospects. “Borrowing isn’t bad; what matters is utilisation,” he said.

But Dr Aliyu Ilias cautioned that Nigeria’s debt stock has surged from N87 trillion under former President Muhammadu Buhari to about N149 trillion under Tinubu, despite improved revenues. Similarly, Dr Muda Yusuf warned that without strong cash flows to meet repayment schedules, the country risked falling into a vicious cycle of borrowing to service existing loans.

According to the Debt Management Office, Nigeria’s debt to the World Bank rose to $18.23 billion by March 2025, accounting for 81.2 per cent of the nation’s multilateral debt profile