Members of the National Assembly’s Joint Committees on Finance have criticised the federal government’s continued borrowing, despite surplus revenues generated by several MDAs in 2024.

During deliberations on the 2025-2027 Medium-Term Expenditure Framework and Fiscal Strategy Paper, lawmakers questioned the rationale behind a $2.2 billion loan request, particularly given the government’s claim of gaining over $20 billion from the removal of the petrol subsidy.

Senator Adamu Aliero (PDP, Kebbi Central) asked: “What is the federal government doing with the excess revenues generated by various agencies, given its unending requests for foreign loans?”

In response, FIRS Chairman Zacchaeus Adedeji clarified that the loans were part of the 2024 budget as approved by the National Assembly. He explained that meeting revenue targets does not negate the need for borrowing to address deficits embedded in the budget.

Senator Atiku Bagudu echoed this view, stating that the borrowing plan was integral to funding the ₦9.7 trillion deficit. “Despite surplus revenue by some agencies, borrowing is still required to fund critical areas of productivity and social welfare,” Bagudu said.

The NASS response to FG’s external borrowings came as the Nigeria Immigration Service faced scrutiny over a Public-Private Partnership (PPP) arrangement for passport production. Lawmakers criticised a revenue-sharing structure that allocates 70% to a consultancy firm and only 30% to the government.

Chairman of the Senate Committee on Finance, Senator Sani Musa, described the arrangement as exploitative and demanded a review or cancellation.

“The so-called PPP arrangement must be reviewed or cancelled because Nigeria and Nigerians are being severely short-changed,” Musa said.

Meanwhile, Finance Minister, Wale Edun, has noted how recent economic reforms, including the removal of petrol subsidies and the floating of the naira, are improving GDP per capita and fostering long-term economic growth.

“For the first time in 40 years, Nigerians cannot enrich themselves by exploiting subsidised allocations from the Central Bank or the NNPC,” Edun noted.

Director-General of the Budget Office, Taminu Yakubu, projected improved fiscal conditions in 2025, citing expectations of lower inflation, reduced fuel imports due to the Dangote Refinery, and increased domestic drug production.

He added: “These reforms will provide significant revenue for federal, state, and local governments, reducing the need for borrowing and stabilising the economy.”

Despite these optimistic projections, the lawmakers demanded greater transparency and accountability, particularly regarding NNPCL’s operations and debt claims against the federal government.