Chairman of the Nigeria Revenue Service (NRS), Dr Zacch Adedeji, has declared that borrowing is an indispensable part of the ecosystem of any viable economy, dismissing criticisms from opposition figures who suggest otherwise.
Adedeji, who addressed State House Correspondents on Tuesday during the Meet-the-Press series organised by the Presidential Communications Team, said borrowing, when responsibly managed, is an essential tool for sustaining growth, spreading the burden of infrastructure financing, and stabilising the economy.
“Borrowing is not a problem. There is no country or individual in the world that survives based only on income. Borrowing is part of the budget we submit and what is approved by the National Assembly. It is part of the ecosystem of a viable nation,” he said.
Explaining further, the NRS boss said government borrowing should not be misconstrued as a sign of fiscal weakness, but as a deliberate strategy to match long-term investments with future revenue flows.
He illustrated with the example of road construction, saying “when you borrow to do roayd, those who use it in future will pay their fair share through taxes. You don’t need to spend your entire lifetime’s resources on infrastructure that will outlive you. That is why borrowing exists.”
Adedeji also dismissed what he described as “container economists” who download unverified claims from social media and raise alarms about Nigeria’s debt profile.
“As much as they fight me, sometimes you ask if they even understand the right questions, or are just downloading WhatsApp messages,” he quipped.
On the controversial issue of Ways and Means advances from the Central Bank, Adedeji clarified that the Tinubu administration had taken decisive steps to end the practice of printing money without backing.
“We have stopped Ways and Means. The whole loan has been collateralised and recognised in the federal government books as debt. We are paying both principal and interest, and that is why there is stability in the system and no pressure on the exchange rate,” he explained.
Turning to recent fiscal reforms, Adedeji disclosed that only two components of the newly enacted tax laws—specifically the Tax Act and Tax Administration Act—will commence on January 1, 2026, in line with the federal fiscal year cycle.
“Company Income Tax is assessed on a preceding year basis, meaning profits made this year are taxed next year. That is why it is logical and strategic to commence in January. The President is a planner, and that is why he insisted commencement should align with the fiscal year,” he said.
However, he confirmed that administrative changes, including the renaming of the service from the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service (NRS), took immediate effect once signed by President Tinubu.
“As it stands today, we are Nigeria Revenue Service,” he affirmed.
Presenting data, Adedeji highlighted the impact of the Tinubu administration’s fiscal reforms, noting that federal revenue collection surged to ₦3.64 trillion in September 2025, up 411 percent from ₦711 billion in May 2023.
The jump was driven by non-oil receipts, which rose sharply to ₦1.06 trillion from ₦151 billion within two years. Oil revenue climbed to ₦644 billion, while Value Added Tax collections more than tripled to ₦723 billion.
Adedeji credited these gains to reforms that streamlined taxes, reduced burdens on small businesses, rationalised incentives, and introduced measures such as excise rules, e-invoicing, and a forthcoming presumptive tax regime for hard-to-tax groups.
He noted that ongoing reforms will harmonise subnational levies, reduce corporate tax rates, and expand the tax net as part of broader fiscal and constitutional reforms.
“Our aim is not just to raise revenue, but to build a fair, efficient, and sustainable system that supports growth and gives confidence to investors,” Adedeji concluded.
Credit: punchng.com
