The Federal Inland Revenue Service (FIRS) Chairman, Dr. Zacch Adedeji, has defended the Federal Government’s borrowing strategy, emphasizing that debt is a legitimate tool for financing growth and infrastructure, not a sign of economic distress.
Speaking to State House Correspondents, Adedeji highlighted that the Tinubu administration ended the practice of Ways and Means financing through the Central Bank of Nigeria, converting it into a structured federal loan with principal and interest repayments.
This, he said, has stabilized the economy and eased exchange rate pressures.“Borrowing is a normal part of any nation’s economic ecosystem,” Adedeji stated, explaining that loans fund infrastructure like roads, which generate future tax revenues.
He noted that every national budget includes expenditure, revenue, and loans, dismissing criticisms of borrowing despite improved revenue.
Adedeji also announced that Personal Income Tax (PIT) and Company Income Tax (CIT) reforms will take effect in January 2026 to broaden Nigeria’s revenue base and reduce reliance on loans.
FIRS chief added: “A budget has three pillars: expenditure, revenue, and loans. If my expenditure is N100,000, revenue is N90,000, and borrowing is N10,000 in line with what is approved by the National Assembly, what is wrong with that? No country survives solely on revenue.
“Borrowing to fund infrastructure, such as roads, yields future tax revenues from businesses and individuals, who benefit from those projects. It is a sustainable approach,” he said.
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