Edun said the loans aren’t just for infrastructural development but also to provide social safety net for the poorest and the most vulnerable
By Kehinde Okeowo
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has defended the President Bola Tinubu-led administration’s decision to continue obtaining loans, saying the government needs to borrow to fund its budget even though some Ministries, Departments and Agencies have surpassing their revenue target.
He made this known during an interactive session of the Senate Joint Committees on Finance and National Planning and Economic Affairs on the 2025-2027 Medium-Term Expenditure Framework/Fiscal Strategy Paper.
Edun during the parley also emphasized the need for the federal legislators to approve the loans requested to fund the budget.
He, however, admitted that borrowing needs to be done productively and efficiently.
He further added that the loans borrowed aren’t just for infrastructural development but also to provide social safety net for the poorest and most vulnerable
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Speaking during the hearing, Edun said, “The revenue effort has been good, but we still need to do better, and in the meantime, we still need to borrow productively, effectively and sustainably.
“Not just infrastructure but also social services, health services, education and intervention in terms of social safety net to help the poorest and most vulnerable.”
On his part, while giving a similar reason, the Minister of Budget and Economic Planning, Senator Atiku Bagudu reminded the lawmakers that the borrowing plans contained in the N35.5 trillion 2024 budget, were primarily meant to fund the N9.7 trillion deficit.
“Despite revenue targets surpassed by some of the revenue generating agencies, the government still needs to borrow for proper funding of the budget, particularly in the area of deficit and productivity for the poorest and most vulnerable.
“We have a long term development perspective plan agenda 2050 aiming at GDP per capita of $33,000,” Bagudu explained.
