CITM hails FG’s 2025 surplus, urges restraint on borrowing
By Emmanuel Oloniruha
The Chartered Institute of Treasury Management (CITM) has commended the Federal Government for projecting a revenue surplus in 2025.
Mr Olumide Adedoyin, Registrar of CITM, said this in a statement on Wednesday in Abuja, saying the surplus was an opportunity to finance development without resorting to additional borrowing.
“The 2025 revenue surplus should be seen as a golden opportunity to fund transition without falling back into debilitating debt.
“The government is right to celebrate improved revenue, as it remains the primary tool to escape the debt trap.
“However, caution is the necessary counterbalance, stressing that the current debt level is unsustainable and threatens the nation’s economic future,” Adedoyin said.
He, however, advised the Federal Government against embarking on fresh borrowing, warning that it could plunge the country into deeper debt distress.
Adedoyin said any new borrowing must be tied strictly to critical, revenue-generating infrastructure projects.
Such borrowing, he added, should be secured only on highly concessional terms of low interest rates and long repayment periods, preferably from multilateral lenders.
“As at mid-2024, Nigeria’s debt profile is marked by rapid growth, a changing composition, and significant fiscal pressures,” he said.
The registrar stressed that the way forward was not through additional borrowing but through radical fiscal discipline, aggressive revenue mobilisation, and prudent debt management.
He added that government must also create an enabling environment where the private sector could drive sustainable economic growth.
To expand revenue, Adedoyin called for widening of the tax net by systematically bringing millions of informal businesses and high-net-worth individuals into the system through technology and data-driven measures.
He noted that taxation should focus more on wealth and consumption, not just income, while non-oil revenue sources such as solid minerals, agriculture and the digital economy must be prioritised to boost exports and tax inflows.
Adedoyin further urged government to ensure that the Nigerian National Petroleum Company Ltd. remits its full obligations to the Federation Account, saying transparency in the oil sector was non-negotiable.
On debt restructuring, he advised proactive engagement with bilateral and commercial creditors to extend repayment periods and reduce interest rates in order to ease annual debt-servicing pressure.
He also called for drastic cuts in waste, corruption and the high cost of governance, urging the merger of redundant agencies and strict enforcement of the Fiscal Responsibility Act.
According to him, savings from the removal of fuel subsidy must be channelled transparently into productive investments and targeted social safety nets, not absorbed into recurrent spending. (NAN)
Edited by Deborah Coker
