The Chartered Institute of Treasury Management (CITM) has applauded the Federal Government for projecting a revenue surplus in 2025, describing it as a rare chance to finance development without resorting to additional debt.
In a statement issued on Wednesday in Abuja, CITM Registrar, Mr. Olumide Adedoyin, said the surplus should be viewed as a “golden opportunity” to support national transition while avoiding the pitfalls of heavy borrowing.
“The government is right to celebrate improved revenue, as it remains the most reliable tool to break free from the debt trap,” Adedoyin noted.
He cautioned, however, that new loans should only be considered for critical, revenue-generating infrastructure projects, and strictly on highly concessional terms such as low interest rates and long repayment periods from multilateral lenders.
According to him, Nigeria’s debt stock as of mid-2024 reflected rapid growth and mounting fiscal pressures, underscoring the urgency of fiscal discipline, aggressive revenue mobilisation, and prudent debt management.
Adedoyin urged government to widen the tax net by systematically integrating informal businesses and high-net-worth individuals using technology and data-driven tools. He emphasised that taxation should focus more on wealth and consumption rather than income alone, while diversifying revenue streams through non-oil sectors like solid minerals, agriculture, and the digital economy.
He further called for full remittances from the Nigerian National Petroleum Company Ltd. into the Federation Account, describing transparency in the oil sector as “non-negotiable.”
On debt management, he advised proactive engagement with creditors to extend repayment periods and lower interest rates, thereby reducing the burden of annual debt servicing.
Adedoyin also pressed for sweeping reforms to curb waste and corruption, including cutting governance costs, merging redundant agencies, and enforcing the Fiscal Responsibility Act.
He added that savings from the removal of fuel subsidy must be channeled into productive investments and targeted social safety nets, rather than recurrent expenditure.