Zacch Adedeji: Borrowing is part of FG budget — meeting revenue target doesn’t stop it

Zacch Adedeji, chairman of the Federal Inland Revenue Service (FIRS), says achieving revenue targets does not stop the federal government from borrowing, as loans remain an integral part of every national budget.

Speaking to State House reporters in Abuja on Tuesday, Adedeji said a country’s budget comprises expenditure, revenue, and borrowing, adding that borrowing is a globally accepted fiscal tool when done sustainably.

He said borrowing is not a problem but part of a sound economic plan.

“Borrowing is not a problem. When you see we borrow, it is part of economic plan. Don’t forget that banks are part of our economic ecosystem,” the FIRS chairman said.

“When government borrows from banks, it is from that interest they pay their salary. It is from the salary that bank pays that they pay taxes to state government. So when you say you go for lending, you go for sustainable.”

Adedeji added that loans are often used to finance long-term projects with benefits that span generations, citing infrastructure as a key example.

“You borrow in order to beat that cost in the future. Secondly, you borrow because of what we call matching concepts in business, most especially when you have continuity,” he said.

“When you build a road today, those who use it in the future will pay their fair share through taxes.”

‘COUNTRY HAS TO BORROW TO GROW’ 

The FIRS boss argued that borrowing, when tied to productive investments, is a hallmark of viable economies, stressing that Nigeria’s borrowing is within the limits approved by the national assembly.

“Any company or any country that will grow has to borrow because it is part of the ecosystem of a viable nation,” Adedeji said.

“When Mr. President said we have met or we are doing well in revenue and they said why are they borrowing? Is borrowing not part of the budget we submitted to the national assembly? Is it not what is approved? Are we borrowing outside what is approved?”

On September 2, President Bola Tinubu said Nigeria achieved its 2025 revenue target ahead of schedule.

Tinubu said the development was driven by non-oil earnings, noting that the country has made progress in stabilising the economy despite external pressures.

Disclosing the figures, the presidency said the federal government generated a revenue of N20.59 trillion between January and August, with non-oil sector accounting for N15.69 trillion out of the total revenue.