National Assembly Debates Tinubu’s Loan Requests Amid Surplus Revenue Generation by Federal Agencies
On Monday, a notable divide emerged among members of Nigeria’s National Assembly over President Bola Tinubu’s recent loan requests. These debates come at a time when several government agencies have reported impressive revenue gains, surpassing their initial targets for the 2024 fiscal year. This raised questions about the continued push for foreign loans despite the substantial growth in internal revenue.
In a recent meeting, Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), announced that the government had generated a staggering ₦1.5 trillion in education tax revenue—significantly exceeding the initial goal of ₦70 billion. This disclosure was made during an interactive session with the National Assembly’s joint Committees on Finance, Budget, and National Planning, held to review the 2025-2027 Medium Term Expenditure Framework and Fiscal Strategy Paper.
Various revenue-generating agencies delivered their 2024 performance reports, confirming that their collective revenue had exceeded expectations. These announcements are particularly timely, given recent public concern over rising school fees nationwide, which had been intended to be mitigated by the education tax.
Adedeji further revealed that while the target for Company Income Tax was set at ₦4 trillion, actual collections have already reached ₦5.7 trillion. He noted, “Out of the ₦19.4 trillion targeted for the 2024 fiscal year, we had already achieved ₦18.5 trillion by the end of September. This shows that by year-end, our revenue will far surpass projections.”
Adding to the encouraging news, Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), reported that the NNPCL exceeded its ₦12.3 trillion target for 2024, reaching ₦13.1 trillion as of September. Looking forward, Kyari projected that NNPCL would contribute an estimated ₦23.7 trillion to the Federation Account in 2025.
Similarly, Nigeria Customs Service Comptroller-General Bashir Adeniyi confirmed that his agency had generated ₦5.35 trillion in revenue, surpassing the ₦5.09 trillion goal for 2024. Adeniyi also set an ambitious revenue target for the coming years, with a goal of ₦6.3 trillion in 2025, followed by projected 10% increases for 2026 and 2027.
Lawmakers Question Need for Additional Loans
Despite these robust revenue figures, some lawmakers expressed concern over the federal government’s persistence in pursuing foreign loans. Senator Sani Musa, who led the committee session, echoed the sentiments of his colleagues as they questioned the rationale behind further debt accumulation. Senator Adamu Aliero (PDP Kebbi Central) voiced his concerns, asking, “Why is the Federal Government seeking more loans when it appears we have excess revenues from various agencies?”
In response, FIRS Chairman Adedeji clarified that the loan requests align with the current Appropriation Act, explaining that any borrowing by the executive has already received legislative approval. “Meeting or surpassing revenue targets does not negate the borrowing aspect of the budget, which was passed by the National Assembly,” Adedeji stated.
Senator Atiku Bagudu, the Minister of Budget and Economic Planning, supported this view, emphasizing that borrowing remains a critical strategy for addressing Nigeria’s budget deficit, projected at ₦9.7 trillion for 2024. “Even with higher revenue collections, borrowing is essential to fund deficits and invest in the productivity of the poorest and most vulnerable citizens,” Bagudu explained. He underscored the government’s commitment to its long-term Vision 2050, which aims to increase GDP per capita to $33,000.
Finance Minister and Coordinating Minister of the Economy, Mr. Wale Edun, echoed these points, asserting that loans are still necessary to support adequate budget funding, despite increased revenue from specific agencies.
Concerns Over Immigration Service’s Public Private Partnership
During the session, the Nigeria Immigration Service faced intense scrutiny over an unfavorable Public Private Partnership (PPP) arrangement. According to reports, the PPP contract governing passport production allocates 70% of profits to a private consultancy, leaving only 30% for the government. Senator Musa, chairing the committee, voiced strong objections to this structure, instructing the Immigration Service to submit all related documents by the end of the week. “This PPP arrangement must be reevaluated or terminated; it is clearly unfair to Nigeria and its citizens,” Musa declared.
