Nigeria’s revenue collection has surged to N3.64 trillion as of September 2025, representing a 411 per cent increase from N711 billion in May 2023, the Federal Inland Revenue Service (FIRS) announced on Tuesday. Despite this growth, the Federal Government under President Bola Ahmed Tinubu plans to continue borrowing as part of its broader economic and fiscal strategy, FIRS Executive Chairman Zacch Adedeji said.
Adedeji, speaking to State House correspondents during the latest edition of the “Meet-the-Press” series organised by the Presidential Communications Team, described borrowing as a normal component of the nation’s budget and fiscal framework.
“Borrowing is not a problem…is borrowing not part of the budget we submitted to the National Assembly? Was it not approved? Are we borrowing aside what was approved?” he asked.
He explained that government borrowing is aimed at long-term investments rather than immediate expenditures such as salaries.
“So, if my expenditure for this year is N100,000 and my plan is that N80,000 will be from my revenue, I will borrow N20,000. If I’ve done revenue of N90,000 and I’m borrowing N10,000 according to what I have in my budget, what is the problem with that?” Adedeji said.
He stressed that borrowing allows governments to avoid higher future costs and ensures continuity in public infrastructure projects, referencing what he described as the “Matchy Concept,” whereby projects with long-term benefits should be funded over time rather than fully upfront.
The revenue chief also addressed criticisms of borrowing, which intensified after President Tinubu in July requested a $21.5 billion external loan package, including a $2 billion foreign currency bond and a N757.98 billion domestic bond to settle pension liabilities.
“Don’t forget that banks are part of our economic ecosystem. There is no country or individual in the world that survives based on its own income. When government borrows from banks, it will pay interest. It is from that interest that salaries are paid; it is from salaries that banks pay taxes; and it is from this profit that I collect taxes,” Adedeji explained.
Regarding the surge in revenue, Adedeji attributed it to reforms that streamlined taxation, reduced burdens on small businesses, and rationalised incentives. Non-oil receipts recorded the sharpest increase, rising from N151 billion to N1.06 trillion over the period, while oil revenue grew to N644 billion. Value Added Tax (VAT) receipts more than tripled to N723 billion, and customs revenue increased to N322 billion. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian National Petroleum Company (NNPC) Limited also contributed significantly to the revenue boost.
“Revenue growth alone does not eliminate the need for borrowing. Borrowing is a key element of a sound economic plan and part of the ecosystem for a viable nation. It ensures that investments with long-term benefits can be realised without causing undue strain on current resources,” Adedeji said.
He further noted ongoing measures expected to sustain revenue growth, including the implementation of a new fiscal policy framework, e-invoicing, excise regulations, and the harmonisation of subnational levies.
The FIRS is also exploring presumptive taxation for hard-to-tax groups and reductions in corporate tax rates as part of broader constitutional reforms aimed at expanding the tax base.
Adedeji described critics who question government borrowing as “container economists” who rely on surface-level analysis and social media narratives without understanding the underlying economic logic.
He stressed that borrowing, when done within approved budgets, supports sustainable national development, infrastructure projects, and long-term fiscal stability.
