The Federal Inland Revenue Service (FIRS) has defended the Federal Government’s borrowing strategy, insisting that debt is a legitimate and sustainable part of every national budget.

Naijaonpoint reports that FIRS Chairman, Zacch Adedeji, stated this on Tuesday while addressing journalists during the Meet-the-Press series organised by the Presidential Communications Team at the Presidential Villa, Abuja.

Adedeji dismissed criticisms of the government’s debt profile, stressing that no nation in the world funds its budget solely on revenue.

“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 the 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 tax chief added that every budget is made up of three core components, expenditure, revenue, and loans, and that as long as government borrowing stays within what is approved by the National Assembly, there should be no controversy.

The FIRS boss argued that borrowing to fund infrastructure projects such as roads, energy, and transport is a “sustainable approach” because it eventually drives tax revenue.

“Borrowing to fund infrastructure, like roads, yields future tax revenues from businesses and individuals who benefit from those projects. It is a sustainable approach,” Adedeji said.

Adedeji announced that Personal Income Tax (PIT) and Company Income Tax (CIT) reforms would take effect from January 2026, as part of efforts to expand Nigeria’s revenue base and reduce overreliance on borrowing.

He added that President Bola Tinubu’s administration had also ended the practice of Ways and Means financing through the Central Bank, converting it into a structured federal loan now being serviced with principal and interest payments.

This, he said, had helped stabilise the economy and ease pressure on the naira.

Highlighting progress in collections, Adedeji disclosed that federal revenue rose to ₦3.64 trillion in September 2025, a sharp rise from ₦711 billion recorded in May 2023, a 411 per cent increase.

A presentation shared during the session indicated that the surge was largely driven by higher non-oil receipts, reflecting the shift in focus from oil-dependent revenue streams.