In a recent press briefing, Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), defended the Nigerian government’s borrowing strategy, emphasizing that debt is a legitimate component of the nation’s fiscal framework.

Adedeji addressed concerns over the administration’s borrowing practices, asserting that borrowing is not inherently problematic but rather a standard element of national budgets.

Key Points

Borrowing as Part of Budgetary Framework: Adedeji clarified that every national budget comprises three components: expenditure, revenue, and loans.

He stated, “If my expenditure is N100,000, revenue is N90,000, and borrowing is N10,000 in line with what is approved by the National Assembly, what is wrong with that?” This perspective underscores that borrowing is a planned and approved aspect of fiscal policy.

Infrastructure Financing: The FIRS Chairman highlighted that borrowing is often utilized to fund infrastructure projects such as roads, which can generate future tax revenues.

He referred to this approach as a “sustainable strategy,” suggesting that investments made today can yield economic returns in the future.

Economic Ecosystem: Adedeji emphasized that borrowing is an integral part of the economic ecosystem.
He noted that when the government borrows from banks, it pays interest, which in turn supports the banking sector, leading to salary payments and tax collections. This cycle sustains economic continuity.

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Reforms and Revenue Growth: The FIRS reported a significant increase in revenue collection, with figures rising from N711 billion in May 2023 to N3.64 trillion in September 2025.
This growth is attributed to reforms such as the introduction of e-invoicing, harmonization of subnational levies, and the implementation of a presumptive tax regime.

Economic Planning

Adedeji’s statements provide insight into the government’s fiscal strategy, highlighting the role of borrowing in financing infrastructure and sustaining economic growth.

While acknowledging concerns over debt levels, he positioned borrowing as a standard and necessary component of national economic planning.