Abuja, Nigeria | September 24, 2025
The Federal Inland Revenue Service (FIRS) has defended the Federal Government’s borrowing plan, describing it as a legitimate component of the national budget cycle.
Speaking at a briefing in Abuja, FIRS Executive Chairman Zacch Adedeji explained that government borrowing is necessary for sustaining infrastructure investment and long-term revenue growth.
He noted that borrowing, when structured and serviced responsibly, supports economic development.
Adedeji announced that reforms to Personal Income Tax (PIT) and Company Income Tax (CIT) will be rolled out beginning in January.
While details of the reforms were not disclosed, he said the measures are designed to strengthen the tax system and improve compliance.
He further disclosed that the administration has ended the use of Central Bank “Ways and Means” financing, converting the previous overdraft facility into a structured federal loan.
According to him, the government is now servicing the facility with principal and interest, marking a shift away from reliance on direct Central Bank funding of budget deficits.
The FIRS chairman emphasized that the reforms and financing adjustments form part of the government’s strategy to strengthen fiscal discipline and improve revenue generation for sustainable economic growth.
