The Executive Chairman of the Federal Inland Revenue Service (FIRS), said the Federal Government under the leadership of President Bola Tinubu will sustain its borrowing plans despite a sharp surge in revenue, just as he added that debt remains a crucial part of Nigeria’s broader economic strategy.
Adedeji, who stated this while speaking with State House correspondents on in Abuja on Tuesday, also revealed that federal revenue collection jumped to N3.64 trillion in September 2025, a 411% increase from N711 billion in May 2023.
FIRS boss credited the gains to reforms that boosted non-oil receipts, expanded the tax net, and strengthened compliance,
“Borrowing is not a problem… is borrowing not part of the budget we submitted to the National Assembly? Was it not approved?. “No country or individual in the world survives based on its own income,” the tax chief said
His remarks come amid mounting debate over Nigeria’s debt profile.
Adedeji dismissed critics of government borrowing, saying it should not be viewed as a weakness but as a deliberate strategy to balance revenues with long-term investment. He stressed that funds raised through loans are not used to pay salaries but to finance infrastructure and development projects.
“What makes up a country’s budget? It consists of expenditure, revenue, and loans. For example, if my annual expenditure is N100,000 and I plan to cover N80,000 from revenue, I would borrow N20,000. “But if I collect N90,000 in revenue and only need to borrow N10,000, all within the approved budget, what’s the problem with that?” He also likened the approach to what he called the “Matchy Concept” in business, which emphasises continuity and fairness across generations.
“Borrowing to build a road ensures that future users can contribute through taxes, thereby paying their fair share over time,he said.
Breaking down September’s record revenue, Adedeji said FIRS’ non-oil collections rose to N1.06 trillion compared with N151 billion two years earlier. Oil receipts stood at N644 billion, while Value Added Tax payment more than tripled to N723 billion. The Nation reported that FIRS boss noted that new excise rules, e-invoicing, harmonised state levies, and a presumptive regime for hard-to-tax groups will further expand compliance.
The FIRS boss also disclosed that that plans are also underway to reduce corporate tax rates as part of broader fiscal and constitutional reforms.
Recall that President Bola Ahmed Tinubu has written to the House of Representatives, seeking approval for an additional $347 million external loan as part of the federal government’s 2025–2026 borrowing plan.
The loan, he said, is required to meet the increased funding needs of the Lagos-Calabar Coastal Highway, whose cost has reportedly risen from $700 million to $747 million. Experts say the new loan, if approved, would pile more pressure on Nigerians by raising the national debt and debt per capita.
