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, in a statement on Wednesday in Abuja described it as an opportunity to finance development without resorting to additional borrowing.
According to him, 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.”
The CITM registrar advised the Federal Government against embarking on fresh borrowing, noting that it could plunge the country into deeper debt distress.
He noted that any new borrowing must be tied strictly to critical, revenue-generating infrastructure projects.
He also said that such borrowing should be secured only on highly concessional terms; low interest rates and long repayment periods preferably from multilateral lenders.
“As at mid-2024, Nigeria’s debt profile was marked by rapid growth, a changing composition, and significant fiscal pressures,” Adedoyin said.
He stressed that the way forward was not through further borrowing but through radical fiscal discipline, aggressive revenue mobilisation, and prudent debt management.
He advised government to also create an enabling environment where the private sector could drive sustainable economic growth.
Adedoyin explained that to expand revenue, there was the need 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.
He also urged the government to ensure that the Nigerian National Petroleum Company Ltd. remits its full obligations to the Federation Account, noting that transparency in the oil sector was non-negotiable.
He further advised for proactive engagement with bilateral and commercial creditors to extend repayment periods and reduce interest rates in order to ease annual debt-servicing pressure.
The CITM boss 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 channeled transparently into productive investments and targeted social safety nets, not absorbed into recurrent spending.
