Because FG is still borrowed despite 411% of boom revenue

… The revenues jump from ₦ 711 billion in 2023 to ₦ 3,64TRN in 2025

… Govt insists that the loans will pay for them

The Federal Government has justified its continuous use of loans despite an increase of 411 percent of national revenues in the last 16 months, insisting on the fact that loans are now dedicated exclusively to infrastructure and production projects.

The president of the Federal Inland Revenue Service (FIRS), Zaccch Addeji, declared this while informing journalists at the presidential villa, Abuja, Tuesday.

According to him, the revenues of Nigeria increased abruptly from ₦ 711 billion in May 2023 to ₦ 3.64 trillion of 3.64 trillions starting from September 2025, following large tax reforms introduced under the administration of President Bola Tinubu.

By breaking down the figures, Addeji revealed that the tax collections do not oil have gone from ₦ 151 billion to over ₦ 1 trillion of trillion, while the oil revenues rose from ₦ 96 billion to ₦ 644 billion in the same period. The entrances of the value added tax (VAT) are also tripled to ₦ 723 billion, the customs revenues have extended from ₦ 106 billion to ₦ 322 billion of 322 billion and the remittances of the oil regulation commission in Monte Nigeriani were up from ₦ 125 billion to ₦ 745 billion.

It has attributed the growing growth to the political measures that have simplified taxes, have reduced charges to small businesses and the technology exploited as the involutions and the data based on the data to block the losses.

Responding to the concerns about the culture of the government loan, Adadeji said that loans were no longer taken to finance recurring expenses such as salaries and subsidies but to financial projects that could generate future revenues.

“The loan is no longer for salaries or subsidies. Now it is for infrastructure and productive investments that will produce future revenue. When you borrow to build roads, in the end you collect taxes from those who use roads,” he said.

He claimed that the loan, if maintained within the budgetary limits and linked to projects guided by growth, was a necessary economic tool.

“If I have 80 entry and borrow 20 as expected, I reach my goal of 100. The problem is when the loan is excessive or not planned. What we are doing is a sustainable loan for growth,” explained Adedeji.

President Tinubu had also underlined in his 2025 mid -year economic briefing that the loan would remain targeted in the projects capable of paying for themselves, while the tax discipline and the mobilization of resources remained fundamental for government policy.

Adedeji stressed that no country survives exclusively on internally generated revenue, adding that the strategic loan was the key to supporting the growth trajectory of Nigeria.

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