The Federal Inland Revenue Service (FIRS) has defended the Federal Government’s borrowing plan, insisting that debt remains a legitimate component of every national budget while announcing that Personal Income Tax (PIT) and Company Income Tax (CIT) reforms will take effect from January.

Speaking on the government’s fiscal strategy while fielding questions from State House Correspondents on Tuesday, the FIRS chairman, Zaccheus Adedeji, said the administration of President Bola Tinubu had ended the practice of Ways and Means financing through the Central Bank, converting the facility into a structured federal loan.

He stressed that the government is now servicing the debt through both principal and interest repayments, a measure he said has contributed to stability in the economy 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. When 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 explained.

The FIRS chief noted that every budget has three components: expenditure, revenue, and loans.

He argued that as long as borrowing falls within what was approved by the National Assembly, there should be no controversy.

“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 beginning in January, PIT and CIT reforms will be rolled out to expand Nigeria’s revenue base, in line with the administration’s drive to reduce overreliance on borrowing.