President Bola Ahmed Tinubu has introduced that the Federal Authorities is now not borrowing from home banks, citing a major income breakthrough pushed by non-oil sectors.
The declaration got here throughout a gathering with members of the Buhari Organisation, led by former Nasarawa State Governor, Senator Tanko Al-Makura, on the Presidential Villa.
Tinubu said that Nigeria had met its annual income goal by August, attributing the achievement to strong non-oil income efficiency.
“The economic system is stabilised, no person is buying and selling piece of paper for trade fee anymore. We’re going up. At the moment I’m standing earlier than you, I can brag that Nigeria isn’t borrowing a dime from native banks,” Tinubu mentioned.
“The income, we have now met our goal of income for the entire yr, we’ve met it in August. Non-oil. If non-oil income is doing properly, then we have now no concern of no matter Trump is doing on the opposite facet.”
Agricultural Mechanization Initiative
The President additionally introduced a nationwide agricultural mechanization initiative geared toward reaching meals sovereignty and lowering poverty.
“I’ve simply signed up on an enormous mechanization program that in each area, we have now a mechanized middle for agric-mechanization. That’s our path to meals sovereignty, meals safety,” he mentioned. “You take away starvation from poverty, you’ve gotten defeated poverty.”
Nigeria’s Debt Profile Continues to Elevate Considerations
Regardless of Tinubu’s optimism, Nigeria’s debt profile continues to boost considerations.
In response to the Debt Administration Workplace (DMO), the nation’s complete public debt stood at N149.39 trillion as of March 31, 2025, a 22.8% enhance from N121.67 trillion recorded in the identical interval of 2024. The determine additionally rose by N4.72 trillion from the earlier quarter.
What You Ought to Know
- A mid-year financial outlook by CSL Stockbrokers Restricted, a subsidiary of FCMB Group Plc, tasks that Nigeria’s public debt may attain N160.6 trillion by year-end.
- The report warns that the Federal Authorities could have to borrow a further N9.3 trillion to cowl a widening fiscal deficit, probably pushing debt to 50.2% of the pre-rebased GDP.
“We count on the federal government to ramp up its borrowing efforts within the second half of the yr to bridge the widening fiscal hole,” the outlook said. “We consider the federal government may come to the market to boost round N9.3 trillion or extra within the second half of the yr, which may see the entire public debt rise to not less than N160.6 trillion (c.50.2% of pre-rebased GDP) by the top of the yr.”
Whereas Tinubu’s administration touts’ fiscal self-discipline and income development, analysts stay cautious amid weak oil earnings and delayed tax reforms. CSL’s report suggests the fiscal deficit may broaden to five.8% of GDP, surpassing the 2025 finances’s projection of three.9%.
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