Debt Is a Legitimate Budget Tool, Says FIRS Chairman

The Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has defended the federal government’s borrowing strategy, insisting that debt remains a legitimate and necessary component of every national budget. He made this known on Tuesday during the Meet-the-Press series hosted by the Presidential Communications Team at the Presidential Villa, Abuja.

Adedeji announced that reforms in Personal Income Tax (PIT) and Company Income Tax (CIT) will take effect from January, as part of efforts to broaden Nigeria’s revenue base and reduce dependence on borrowing. He revealed that federal revenue collection reached ₦3.64 trillion in September 2025, representing a 411 per cent surge from ₦711 billion in May 2023, largely driven by non-oil earnings.

He further explained that the administration of President Bola Tinubu had ended Ways and Means financing through the Central Bank of Nigeria (CBN), converting it into a structured federal loan now being serviced through principal and interest repayments. According to him, this move has helped stabilize the economy and ease pressure on the naira.

“Borrowing is not a problem; it is part of every viable nation’s ecosystem,” Adedeji stressed, noting that all budgets consist of expenditure, revenue, and loans. He argued that borrowing to fund infrastructure projects like roads creates future tax revenues from businesses and individuals who benefit from them, making it a sustainable approach.