The Federal Inland Revenue Service (FIRS) has defended the federal government’s borrowing framework, describing debt as a legitimate component of every national budget.
FIRS Chairman Zacch Adedeji stated this on Tuesday while addressing journalists during the Meet-the-Press series organised by the Presidential Communications Team at the Presidential Villa, Abuja.
He explained that federal revenue collection rose to ₦3.64 trillion in September 2025, representing a 411 per cent increase from ₦711 billion in May 2023. He also announced that reforms in Personal Income Tax (PIT) and Company Income Tax (CIT) will take effect from January 2026.
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Adedeji further noted that the Tinubu administration had discontinued Ways and Means financing through the Central Bank, converting it into a structured federal loan now being serviced through principal and interest repayments. He said this measure has contributed to economic stability and eased pressure on the exchange rate.
“Borrowing is not a problem. It is part of every viable nation’s ecosystem. No country in the world survives entirely on its own revenue,” he said, adding that loans approved by the National Assembly remain sustainable when tied to infrastructure projects that generate future tax revenues.
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The FIRS boss stressed that every national budget is built on three pillars—expenditure, revenue, and loans—and argued that borrowing to fund infrastructure such as roads would expand the tax base and reduce overreliance on debt in the long term.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
