The Federal Inland Revenue Service (FIRS) has come to the defense of the Federal Government’s borrowing policy, arguing that debt is a necessary and sustainable component of any national budget. FIRS Chairman, Zacch Adedeji, made the case during a “Meet-the-Press” session at the Presidential Villa in Abuja.
Adedeji pushed back against criticism of the government’s debt profile, stating that no country in the world can fully fund its budget from revenue alone. “Borrowing is not a problem. It is part of every viable nation’s ecosystem,” he explained. “When the government borrows from banks, it pays interest; banks pay salaries from that, and taxes are collected from their profits. It is a cycle that sustains continuity.”
The FIRS chairman emphasized that a national budget is fundamentally composed of three elements: expenditure, revenue, and loans. He maintained that as long as the government’s borrowing remains within the limits approved by the National Assembly, there should be no cause for concern.
He further argued that using borrowed funds to finance infrastructure projects like roads and energy is a “sustainable approach” because these investments eventually generate future tax revenue from the businesses and individuals who benefit from them.
In a move to strengthen Nigeria’s revenue base and lessen the reliance on debt, Adedeji announced that reforms to the Personal Income Tax (PIT) and Company Income Tax (CIT) are scheduled to take effect in January 2026. He also highlighted that the Bola Tinubu administration has ended the practice of “Ways and Means” financing through the Central Bank, converting it into a formal federal loan that is now being serviced with both principal and interest payments. He credited this change with helping to stabilize the economy and ease pressure on the naira.
Adedeji also presented data showing significant progress in revenue collection. Federal revenue increased by 411% to ₦3.64 trillion in September 2025, up from ₦711 billion in May 2023. This surge, he said, was largely driven by higher non-oil receipts, reflecting a successful shift away from a heavy dependence on oil revenue.
