The National Assembly on Monday raised concerns over President Bola Tinubu’s loan requestsfollowing revelations that several federal revenue-generating agencies have surpassed their 2024 budgetary revenue targets.
During an interactive session with the joint committees on Finance, Budget, and National Planning on the 2025-2027 Medium-Term Expenditure Framework and Fiscal Strategy Paper, the Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, disclosed a remarkable revenue performance. He revealed that the Federal Government generated N1.5 trillion in education tax, significantly exceeding the N70 billion target for 2024.
Record Revenue Achievements
Adedeji highlighted other milestones, including the collection of N5.7 trillion in Company Income Tax against a target of N4 trillion. Overall, he reported that the government realized N18.5 trillion out of the N19.4 trillion targeted by September 2024, projecting an even higher performance by year-end.
Similarly, the Group Chief Executive Officer of Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, announced that the company had already surpassed its revenue target of N12.3 trillion for 2024 by generating N13.1 trillion. For the 2025 fiscal year, Kyari projected NNPCL’s contribution to the Federation Account at N23.7 trillion.
The Nigeria Customs Service (NCS) also exceeded expectations, with Comptroller-General Bashir Adeniyi reporting N5.35 trillion in revenue as of September, surpassing the N5.09 trillion target for the entire year. Adeniyi projected a 10% annual increase in revenue targets for 2025 and beyond.
Lawmakers Challenge Loan Justification
Despite these impressive figures, senators expressed frustration over the Federal Government’s persistent foreign loan requests. Senator Adamu Aliero (PDP Kebbi Central) questioned the rationale behind the loans, given the increased internally generated revenues.
“What is the Federal Government doing with the excess revenues generated by these agencies in view of its unending request for foreign loan approvals?” Aliero asked.
Government Defends Borrowing Plans
Responding, the FIRS Chairman clarified that the loans were part of the Appropriation Act passed by the National Assembly. “Borrowing is based on legislative approval, and meeting revenue targets does not eliminate the need for financing budget deficits,” Adedeji said.
The Minister of Budget and Economic Planning, Senator Atiku Bagudu, and the Finance Minister, Mr. Wale Edun, echoed this sentiment. Bagudu explained that the N9.7 trillion budget deficit in the N35.5 trillion 2024 budget necessitated borrowing, even with increased revenues.
Edun emphasized the importance of maintaining borrowing to address critical funding needs, particularly for vulnerable populations and long-term development plans, such as the 2050 agenda targeting a GDP per capita of $33,000.
Immigration Service Under Scrutiny
Meanwhile, the Nigeria Immigration Service came under fire over a controversial Public-Private Partnership (PPP) arrangement for passport production. Senator Sani Musa, Chairman of the Joint Committee, criticized the deal, which allocates 70% of proceeds to a consultancy firm and 30% to the government.
“The so-called PPP arrangement must be reviewed or cancelled because Nigeria and Nigerians are seriously being short-changed,” Musa declared, ordering the Immigration Service to submit relevant documents for further investigation.
As the National Assembly continues to scrutinize government borrowing plans, the debate highlights a growing demand for transparency and accountability in managing Nigeria’s fiscal policies.