Abuja: The Chartered Institute of Treasury Management (CITM) has commended the Federal Government for projecting a revenue surplus in 2025. Mr. Olumide Adedoyin, the Registrar of CITM, emphasized in a statement on Wednesday that the projected surplus presents an opportunity to finance development initiatives without resorting to additional borrowing.
According to News Agency of Nigeria, Adedoyin highlighted the importance of viewing the 2025 revenue surplus as a strategic chance to fund national transitions without increasing the country’s debt burden. He acknowledged the government’s efforts in improving revenue, seeing it as a crucial tool to avoid the pitfalls of escalating debt. However, he cautioned that the current debt level is unsustainable and poses a significant threat to the nation’s economic stability.
Adedoyin warned the Federal Government against new borrowing ventures, suggesting that such actions could exacerbate the nation’s debt distress. He advocated that any future borrowing should be strictly tied to critical, revenue-generating infrastructure projects and secured on highly concessional terms with low interest rates and extended repayment periods, ideally from multilateral lenders.
As of mid-2024, Nigeria’s debt profile is characterized by rapid growth, evolving composition, and considerable fiscal pressures. Adedoyin stressed that the solution lies not in further borrowing but in adopting radical fiscal discipline, enhancing revenue mobilization, and implementing prudent debt management strategies. He urged the government to foster an environment conducive to private sector-driven sustainable economic growth.
To expand revenue, Adedoyin recommended broadening the tax net by incorporating millions of informal businesses and high-net-worth individuals through technology and data-driven initiatives. He suggested shifting the focus of taxation towards wealth and consumption rather than solely on income. Additionally, he emphasized the importance of prioritizing non-oil revenue sources, such as solid minerals, agriculture, and the digital economy, to boost exports and tax inflows.
Adedoyin also called on the government to ensure that the Nigerian National Petroleum Company Ltd. fulfills its financial obligations to the Federation Account, underscoring that transparency in the oil sector is essential. Regarding debt restructuring, he advised proactive engagement with bilateral and commercial creditors to extend repayment periods and reduce interest rates, thereby alleviating annual debt-servicing pressures.
Finally, Adedoyin urged significant reductions in waste, corruption, and the high cost of governance. He recommended merging redundant agencies and strictly enforcing the Fiscal Responsibility Act to achieve fiscal sustainability.
