Since debt is a valid and sustainable component of every national budget, the Federal Inland Revenue Service (FIRS) has backed the Federal Government’s borrowing policy.
According to reports, this was said by FIRS Chairman Zacch Adedeji on Tuesday when he spoke to reporters at the Presidential Villa in Abuja as part of the Presidential Communications Team’s Meet-the-Press series.
Adedeji brushed off criticism of the government’s debt load, emphasizing that no country in the world depends entirely on revenue to pay its budget.
“There is no issue with borrowing. It is a component of the ecosystem of any thriving country. No government in the world lives fully on its own earnings.
“The government pays interest when it borrows money from banks, and banks use that money to pay salaries and collect taxes from their earnings. He clarified, “It is a cycle that maintains continuity.”
The tax chief went on to say that there should be no controversy as long as government borrowing stays within the limits set by the National Assembly. Every budget is composed of three main components: expenditures, revenue, and loans.
The head of FIRS said that borrowing to finance energy, transportation, and road projects is a “sustainable approach” since it eventually generates tax income.
When infrastructure, such as roads, is financed by borrowing, future tax income from the companies and people who profit from the investments is generated. It’s a sustainable strategy,” Adedeji declared.
In an attempt to increase Nigeria’s income base and lessen its excessive reliance on borrowing, Adedeji said that the Personal Income Tax (PIT) and Company Income Tax (CIT) reforms will go into force in January 2026.
The Ways and Means financing technique through the Central Bank was likewise discontinued by President Bola Tinubu’s government, he added, and it was replaced with a structured federal loan that is currently being repaid with principal and interest.
He said that this had lessened pressure on the naira and stabilized the economy.
Adedeji highlighted collecting progress, revealing that federal revenue increased 411 percent to ₦3.64 trillion in September 2025 from ₦711 billion in May 2023.
As the focus shifted away from oil-dependent revenue streams, a presentation presented during the session showed that the spike was mostly driven by greater non-oil receipts.
