FG exceeds 2024 borrowing target by N4.79tn

The Federal Government exceeded its 2024 borrowing target by N4.79 trillion, pushing new borrowings to N12.62 trillion, after a revenue shortfall widened the fiscal deficit to N13.51 trillion, according to the Budget Office of the Federation’s 2024 implementation report.

The Federal Government exceeded its 2024 borrowing target by N4.79tn after a wider-than-projected budget deficit forced it to raise significantly more financing than originally planned, the Budget Office of the Federation has disclosed.

According to the latest Fourth Quarter and Consolidated Budget Implementation Report for 2024, the Federal Government’s new borrowings rose to N12.62tn, exceeding the budgeted N7.83tn by N4.79tn, or 61.2 per cent.

The Punch reports that the higher borrowing requirement followed a substantial revenue shortfall, which pushed the fiscal deficit to N13.51tn, well above the approved deficit of N9.18tn.

Aggregate Federal Government revenue stood at N20.98tn, compared with the budget estimate of N25.88tn, representing a shortfall of N4.90tn, while total expenditure amounted to N34.49tn, only N561.29bn below the approved estimate, indicating the wider fiscal gap was driven primarily by weaker revenue rather than higher spending.

Domestic borrowing remained exactly on target at N6.06tn, but foreign borrowing rose from a budgeted N1.77tn to N3.37tn. The Federal Government also received N3.19tn in budget support, despite making no provision for such financing in the 2024 budget, with the source undisclosed.

Together, these brought total new borrowings to N12.62tn, financing about 36 per cent of the 2024 budget.

Oil revenue remained the biggest weakness, with gross oil revenue at N15.07tn, falling N4.93tn below estimate, as crude oil prices averaged $74.65 per barrel against a $77.96 benchmark, and production averaged 1.54 million barrels per day against a 1.78 million target.

Non-oil revenue, however, exceeded expectations at N16.09tn, driven by stronger collections from Company Income Tax, VAT, the Electronic Money Transfer Levy and Customs revenue.

Total debt expenditure reached N12.36tn, 52.71 per cent above the N8.27tn budgeted, while N5.81tn was released and cash-backed for capital projects during the year. Expected privatisation proceeds of N298.49bn did not materialise.