Abuja, September 24, 2025 – The Federal Inland Revenue Service (FIRS) has defended the federal government’s borrowing strategy, describing debt as a legitimate and necessary part of every national budget.
FIRS Chairman Zacch Adedeji made the remarks on Tuesday while speaking to journalists during the Meet-the-Press series organized by the Presidential Communications Team at the Presidential Villa, Abuja.
Adedeji highlighted that borrowing is a normal aspect of national finance, noting that no country survives solely on internally generated revenue. “Borrowing is not a problem. It is part of every viable nation’s ecosystem. 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,” he said.
The FIRS boss explained that the administration of President Bola Tinubu has ended the practice of Ways and Means financing through the Central Bank, converting it into a structured federal loan. This approach, he said, ensures that debts are serviced through both principal and interest repayments, contributing to economic stability and easing pressure on the naira.
Adedeji further emphasized that every budget comprises three components: expenditure, revenue, and loans. “Borrowing to fund infrastructure, like roads, yields future tax revenues from businesses and individuals who benefit from those projects. It is a sustainable approach,” he said.
He also confirmed that Personal Income Tax (PIT) and Company Income Tax (CIT) reforms would take effect from January, aiming to broaden Nigeria’s revenue base and reduce reliance on borrowing.
The FIRS chief announced that federal revenue collection rose to N3.64 trillion in September 2025, a 411% increase from N711 billion in May 2023, driven largely by higher non-oil receipts.
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