In 2024, the Federal Government of Nigeria (FGN) issued bonds worth ₦5.84 trillion to the Nigerian Federal Government to cover the budget deficit.
The “Budget of Renewed Hope,” the 2024 budget, called for spending ₦27.5 trillion.
Revenues were expected to reach ₦18.32 trillion, a substantial rise from 2023’s ₦9.73 trillion.
There was a budget shortfall of about ₦9.18 trillion as a result of the discrepancy between anticipated revenue and spending.
A significant amount of the deficit was covered through domestic borrowing, including the issue of FGN bonds of ₦5.84 trillion, as part of the government’s many financing options to close this fiscal imbalance.
To supplement domestic financial efforts, plans were also in place to get external loans.
With a projected growth rate of 3.76%, the 2024 budget sought to boost economic expansion.
Although borrowing is a popular strategy for controlling budget deficits, it adds to the level of national debt. Nigeria’s public debt stock was ₦134.3 trillion as of June 2024, raising questions about the debt’s sustainability and the growing share of government revenue devoted to debt servicing.
