The Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, has defended the Federal Government’s recent loan requests, clarifying that borrowing is an integral part of the Appropriation Act approved by the National Assembly.
Adedeji made this statement on Monday in Abuja during an interactive session on the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for revenue-generating agencies.
The session was organized by the National Assembly Joint Committees on Finance, National Planning, and Economic Affairs.
Borrowing embedded in budgetary plans
Responding to a query from Senator Adamu Aliero (PDP-Kebbi) regarding the government’s continued loan approvals despite surplus revenue, Adedeji emphasized that the executive’s borrowing is guided by legislative approval.
“Borrowing is part of what has been approved by the National Assembly for the Federal Government.
“Surpassing revenue targets by revenue-generating agencies does not negate the activation of the borrowing component stipulated in the Appropriation Act,” Adedeji said.
Funding budget deficit
Also speaking, the Minister of Budget and Economic Planning, Senator Atiku Bagudu, highlighted that borrowing remains essential to addressing the N9.7 trillion deficit in the N35.5 trillion 2024 budget.
“Despite surpassing revenue targets, borrowing is crucial for proper budget funding, particularly to address deficits and enhance productivity for the poorest and most vulnerable Nigerians,” Bagudu explained.
He also pointed to Nigeria’s long-term development plan, Agenda 2050, which envisions a GDP per capita of $33,000, as a critical focus area.
Optimism for economic reform
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, reiterated the need for borrowing despite increased revenue generation. He expressed optimism about Nigeria’s economic outlook, crediting President Bola Tinubu’s administration for resetting the economy amid challenging times.
“Key decisions on petroleum product pricing and foreign exchange reforms have sent positive signals to investors,” Edun noted, adding that strategic measures for the 2025 budget would further position Nigeria for growth.
During the session, several revenue-generating agencies reported significant achievements in surpassing their 2024 fiscal targets:
- Nigeria Customs Service (NCS): Comptroller-General Bashir Adeniyi revealed that the NCS had generated N5.352 trillion as of September 30, surpassing its N5.09 trillion target. Projections for 2025 stand at N6.3 trillion, with subsequent increases planned for 2026 and 2027.
- Nigerian National Petroleum Company Limited (NNPCL): Group Chief Executive Officer Mele Kyari announced that the company had exceeded its N12.3 trillion revenue projection for 2024, achieving N13.1 trillion. For 2025, N23.7 trillion is projected for remittance to the Federation Account.
- FIRS: Dr. Adedeji disclosed that the agency had surpassed its revenue targets across various tax components. For instance, N5.7 trillion has been realized from a target of N4 trillion in Company Income Tax, while N1.5 trillion was achieved from Education Tax, exceeding a N70 billion target.
Despite these successes, Senator Sani Musa (APC-Niger), Chairman of the Joint Committee, criticized the Nigerian Immigration Service (NIS) for its inability to provide clarity on its revenue performance. He specifically questioned the Public-Private Partnership (PPP) arrangement between the NIS and a private firm for passport production, urging the agency to reappear before the committee.
What you should know
Amid concerns over the country’s rising debt profile, the Nigerian Senate recently approved a new external borrowing plan request of $2.2 billion presented for consideration by President Bola Tinubu.
- The approval followed the adoption of the report of the Senate Committee on Local and Foreign Debts. The report was presented by the Chairman of the Committee Sen. Aliyu Wammako (APC -Sokoto).
- Presenting the committee‘s report, Wammako said the presidential request was very necessary for approval.
- He said the loan request would be utilised for the execution of ongoing projects and programs in the 2024 appropriation act, saying that the projects were critical for national growth and development.
