Lawmakers Clash Over Tinubu’s Loan Requests as FIRS, Customs Surpass Targets

Disagreements emerged among National Assembly members on Monday over President Bola Tinubu’s requests for foreign loans, despite significant revenue surpluses reported by federal agencies for the 2024 fiscal year.

The Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, revealed during an interactive session with the National Assembly’s joint Committees on Finance, Budget, and National Planning that the Federal Government had generated ₦1.5 trillion in education tax revenue, far exceeding the ₦70 billion target. This session focused on the 2025-2027 Medium Term Expenditure Framework and Fiscal Strategy Paper.

Other revenue agencies echoed similar success stories. The Nigerian National Petroleum Company Limited (NNPCL) surpassed its 2024 target of ₦12.3 trillion by generating ₦13.1 trillion, while the Nigeria Customs Service exceeded its ₦5.09 trillion target by collecting ₦5.35 trillion as of September 30. Overall, the Federal Government achieved ₦18.5 trillion in revenue by September, approaching its ₦19.4 trillion annual target.

Revenue Surpluses Amid Rising Borrowing

Despite these impressive figures, lawmakers questioned why the Federal Government continues to seek foreign loans. Senator Adamu Aliero (PDP, Kebbi Central) asked, “What is the Federal Government doing with excess revenues generated by various agencies in view of its unending request for foreign loan approval?”

Senator Sani Musa, chairing the session, expressed frustration at the government’s reliance on borrowing despite substantial internally generated revenue (IGR).

Responding to the concerns, FIRS boss Zacch Adedeji explained that borrowing is part of the Appropriation Act approved by the National Assembly. “The fact that we exceed revenue targets does not negate the borrowing component already authorized by the legislature,” he said.

Minister of Budget and Economic Planning, Senator Atiku Bagudu, and Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, defended the borrowing strategy. Bagudu highlighted that the ₦35.5 trillion 2024 budget includes a ₦9.7 trillion deficit that necessitates external funding. “Borrowing ensures adequate funding for productivity and support for the poorest and most vulnerable,” Bagudu noted, adding that the government’s long-term development agenda targets a GDP per capita of $33,000 by 2050.

Concerns Over Public-Private Partnerships

The session also scrutinized the Immigration Service over its Public Private Partnership (PPP) arrangements for passport production, which allocated 70% of the revenue to a consultancy firm, leaving only 30% for the government. Senator Musa directed the agency to submit all related documents, stating, “This PPP must be reviewed or cancelled because Nigerians are being short-changed.”

As debates continue, questions remain about the government’s fiscal strategies and the justification for ongoing loan requests in the face of rising revenue surpluses.

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